Melbourne Commercial & Industrial Market Update – February 2020

February 24, 2020

It’s 2020 let’s get moving!

Melbourne’s suburban markets are experiencing a refreshed period of desire and opportunity. The investor and Owner occupier demand in the industrial market remains strong heading into 2020; despite funding constraints. Commercial property yields are being driven toward 5%, and in some cases at levels below, which reflects record levels for Melbourne’s greater southeast. As we service a diverse mix of specialist property sectors including retail, office, healthcare, industrial and logistics we believe that economic confidence is the hurdle for participants seeking to invest in property. However, the scarcity of development ready sites has maintained the upward pressure ensuring buyers remain competitive.

Melbourne’s Industrial South East, which includes traditional industrial suburbs such as Dandenong, Braeside and Springvale, are areas now home to huge warehouse and retail developments. The precinct’s popularity, with good transport links and a skilled available workforce, contributes to land value growth in this region. Manufacturing is still the south-east precinct’s dominant land user, accounting for approximately a third of total occupiers.

So looking forward we see a healthy level of appetite for investments and undervalued sites that will encourage Vendors of commercial and industrial property to take advantage of these historic low levels of listings for their competition.

Mark Bond
Facey Property