Melbourne industrial sales to June break $1 billion, rentals hit decade high
More than $1 billion in industrial property was sold in Melbourne for the year up to June with private investors accounting for 40% of total sales value.
A total of 648,324 square metres was leased during the same period, according to Savills July 2015 Melbourne Industrial Briefing.
The briefing found $1.47 billion of industrial property was sold in the year to June 2015 , with some investors choosing a “super” Prime category of industrial investment.
The report noted factors such as capital raising, debt restructuring and the slowing of restrictions to debt finance have led to a return of Funds and Trusts investing in the market. Private investors, attracted by low interest rates and positive returns took a 40% market share of sales.
Owner-occupier purchases amounted to 12% of all stock priced higher than $2 million. The market under $20 million accounts for over half of all sales vale.
Industrial leasing deals are higher than the decade average with 648,324 square metres leased from 92 deals. The previous year held 497,238 square metres of stock from 82 deals. This result suggests an improvement in conditions from an environment that has been a difficult
The decade average prior to this year was 598,982 square metres per annum.
