East Coast Industrial land values continue to soar

Colliers International release Industrial Research and Forecast Report for H2

Industrial land values in Australia are being driven by major infrastructure projects and rapid population growth, particularly on the East Coast, according to Colliers International’s latest Research and Forecast Report (RFR).

Colliers report states that at the second half of 2019, Sydney’s industrial capital values ($3,258 per sqm) and land values ($1,261 per sqm) are the highest in the country, representing an 8% and 4% increase respectively, on the previous six months of the year.

Melbourne has the second highest capital value for the same time period ($1,975 per sqm) followed closely by Brisbane, ($1,874 per sqm). Over on Australia’s west coast, Perth recorded the country’s second highest land value ($438 per sqm), followed by Melbourne ($393 per sqm).

According to Colliers Internationals’ report, these prices are being determined by major transport infrastructure projects which play a critical role in shaping the dynamics of how a country uses its labour force and capital. 

“The Australian transport infrastructure network has entered an era of transformation and renewal, with an estimated $133 billion of committed projects under construction, and over 65 per cent of this investment scheduled for completion in the next three to five years,” said Malcom Tyson, Managing Director, Industrial at Colliers International.

“There can be no doubt that the current transport infrastructure investment is set to transform the outlook of the industrial market for operators, developers and investors alike.” 
Several infrastructure projects currently under construction on Australia’s East Coast are expected to have a significant impact on the way the county’s industrial market operates. These include; the $16.8 billion Westconnex project in Sydney; the $6.7 billion West Gate tunnel project in Melbourne and the $10 billion Inland Rail project which will expand and connect supply chains across Melbourne and Brisbane international and domestic markets.

The Colliers International Industrial RFR also highlights that the value of industrial land is being driven by rapid population growth. Sydney has reported an increase in industrial land values in the range of 85% – 215% for the past five years; Melbourne’s land values have increased between 25%-105% and Brisbane’s between 25%-50%.

“Rapid population growth and high population density in the East Coast underpin the increase in land values throughout the largest capital cities, as land availability for industrial development becomes limited and its use is restricted to other purposes, particularly in proximity to the CBD,” said Simon Andreatta, Head of Industrial Valuations at Colliers International.

Karina Salas, Research Manager at Colliers International said, “As more than half of the Australian population remains heavily concentrated in Sydney, Melbourne and Brisbane, industrial land values in these capital cities will continue to trend upwards, with the transition from bricks and mortar retail to ecommerce retail becoming another key driver of industrial activity in these regions.

Read the full report here

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Malcom Tyson

Managing Director | Industrial

Sydney CBD

Malcom joined Colliers International in 1994 in the North Sydney office as an industrial sales and leasing agent. Colliers International is known in the market for their progressive, collaborative and innovative culture, and he was very determined to join their team. Now as a leader in the business, he facilitates that collaboration across our service lines both domestically and internationally to achieve our goals. Over his 26 years at Colliers, Malcom has developed and grown multiple teams; his current role is Managing Director of Industrial where he heads up the largest and most specialised industrial division in Australia.

In 2005, Malcom joined the ANZ Executive where the leadership group has steered Colliers International to reach incredible growth and further developed our brand and client offering. Malcom became the NSW State Chief Executive in 2006, and leads the 730+ staff in the NSW team across six offices and dozens of on-site management teams. Our NSW business is the Centre of Excellence for the broader Australia and New Zealand teams, and our team leads the business in innovation and best practice.

Malcom's speciality is the sales and leasing of institutional-grade industrial property, and he works to provide his clients with insights into the future of industrial property and where they can reap the most value. Having sold over $6bn+ of property over my career,  Malcom gets a great deal of satisfaction being a trusted advisor and expert for his clients.

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Simon Andreatta

Head of Industrial | Valuation & Advisory Services

Sydney West

Simon has 17 years’ experience in the property valuation industry, during this time he has undertaken valuations in all classes of real property for various purposes.

Simon joined the Colliers International team in the North Sydney Office as Director of Industrial in November 2017. Prior to this, Simon was a Director at Savills, responsible for management of the mortgage and government sectors of the business, and since 2012 has specialised in industrial valuations for institutional, private and mortgage clients.

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Karina Salas

Associate Director, Research

Brisbane CBD

Karina began her professional career in Peru in the areas of credit analysis and banking negotiation, shaping the analytical skills supporting her current portfolio of clients at Colliers International.

During her experience as an Analyst Supervision with APRA and in corporate finance, she has gained experience across many facets of business and project investment including research, feasibility analysis, forecasting, risk management, funding structure and financing.

Her passion for the property sector supported her decision to change careers and invest in the delivery of a portfolio of small development projects for the residential sector. Karina has gained solid experience in the property sector across various investment assets including residential, commercial and industrial.

Throughout her career, Karina has gained a vast knowledge in risk management, project management, finance and property research, making her a valuable asset for our clients in the Brisbane office.  

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