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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

Chief Executive Officer | Australia

Corporate Executive

Sydney CBD

Malcom is the Chief Executive Officer for Colliers in Australia, delivering on our business plan and driving our enterprising culture. Our company is underpinned by a clear set of values, designed to maximise the potential of property to accelerate the success of our clients and our people.  

Over his 27-year career with Colliers, Malcom has had the opportunity to build and grow a number of successful teams. Prior to his current role, he led the NSW business along with the national Industrial business for 15 years. In 2005, Malcom joined the National Executive where the leadership group has steered our business to achieve incredible growth and reinforced our market-leading culture. Our business stability and continuity continue to attract market leaders, empowering them to think and act differently to drive exceptional results.  

Colliers has an enterprising culture which underpins our strategy for success. The business has won multiple accolades as a Best Employer and best in class in many service arenas. We appreciate the loyalty of our people and our clients and we thrive on collaborating to create enterprising solutions that exceed expectations. 

Within Australia, Malcom has had the benefit of working with a highly regarded leadership team, including John Marasco and Simon Hunt, who are focussed on maximising the potential of property for our clients, through delivering enterprising solutions as we work through the market conditions of 2021. By keeping aligned to our values of being enterprising to exceed expectations and collaborating to drive exceptional results, Colliers are well positioned in 2021 to maximise the potential of property and to be a part of leading our industry into the future, not only in Australia but right across the Asia Pacific region. 

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Simon Andreatta

Head of Industrial | Valuation & Advisory Services

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

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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