Sydney Commercial and Industrial Market Review – March 2020

February 24, 2020

The Sydney Industrial Market maintained its strong run through the last quarter of 2019, with increasing activity levels continuing in 2020.

Sales
Strong demand from owner-occupiers and investors for good quality industrial assets continues against a background of limited offerings, continued low interest rates and improved lending covenants. Improving capital values for buildings have also spurred numerous new strata developments across the market in suburbs including Marrickville, Hillsdale, Banksmeadow, Chipping Norton, Prestons, Greenacre, Revesby, Smeaton Grange and Yennora. Strong sales results have been achieved across most of these developments.

Leasing
Leasing demand was off its peak during the last quarter; however, enquiry levels have been very strong in December and January. Pricing has remained very strong due to limited stock levels.

Land
With limited supply, vacant land values continue to rise in all areas. Additionally, the continued development of the infrastructure for the new Western Sydney International Airport at Badgerys Creek has spurred many large industrial property companies to secure future developable land in close proximity. Link Property Services has assisted such companies to buy over $200 million worth of land.

Chris Sully
Link Property Services

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