Sales Volumes for Brisbane Industrial Property Reach New High
The latest Briefing Brisbane Industrial report from Savills Research Queensland has been released, revealing that sales volumes for Brisbane industrial property have reached a new high since peaking in 2008.
According to the latest report from Savills Research Queensland, overall confidence in the Brisbane industrial property market is slowly improving, with the ‘Transport and Logistics’ sector still the most active. The report outlines that:
- Access to major arterial roads remains a key driver, whilst the expansion of the Port of Brisbane continues to place the Trade Coast as a much sought after precinct.
- Industrial rents generally ranged from $90 to $150 a square metre for prime industrial space.
- Land values range from $175 to $450 per square metre for land between 3000 and 5000 square metres.
- Investment yields for prime industrial property range from 6.5 per cent to 7.5 per cent in Brisbane.
- Savills recorded approximately $1.133 billion in transactions in the 12 months to March 2016, the highest level since the peak in 2008.
The report also details upcoming infrastructure projects set to affect the industrial property sector.
“The State Government State Infrastructure Plan (SIP) was released on 13 March 2016 which will pave the way for much needed infrastructure projects across Queensland. The main objectives of the SIP are to set a clear vision for future infrastructure planning and to provide much needed certainty around the government’s investment program over the next four years.
Key projects set to benefit the industrial sector include the Toowoomba Second Range Crossing, Gateway Upgrade North, Gold Coast Light Rail – Stage 2, continuing Bruce Highway upgrades and the Gold Coast Commonwealth Games road package.
Also key is the Federal Government’s $10 billion Brisbane to Melbourne inland freight railroad project which will provide a significant boost to Queensland’s industrial sector.
According to the report, “Buyers within the $2-10 million dollar price range remain the most active, with 75 per cent of industrial sales for the year ending March 2016.
“The hunt continues by investors for prime assets encouraged by the returns that property offers in the current climate, however, well located land is also eagerly sought as developers return to the market."
“The Brisbane metropolitan industrial market is expected to improve, with continued demand for properties within the key industrial precincts. The importance of the Trade Coast is likely to continue, with further improvement in capital values expected over the short to medium term. The low interest rate environment, should it continue, is likely to also stimulate activity within the Brisbane industrial sales and leasing market.”