INDUSTRIAL PROPERTY SALES SOAR

Written on the 3 February 2015 by Antony Scholefield

INDUSTRIAL PROPERTY SALES SOAR

INDUSTRIAL property transactions in Brisbane have reached their highest value of the past 10 years, according to real estate services company CBRE.

Looking at transactions of more than $5 million, CBRE's 'MarketView' report says industrial property sales in the 12 months to December 2014 were worth more than $800 million.

Over 50 per cent of sales occurred in the last quarter, with a collective value of $450 million.

Sales of more than $5 million reached their highest number since 2007, continuing an upward trend that started in 2011.

Real estate investment trusts were the most active investors, the CBRE report says.

"Demand from institutional investors has seen indicative yields in the super prime market compress to 7.32 per cent, whilst prime yields remained steady at 8.14 per cent," it says.

"There is no evidence to suggest that investment in the industrial sector will slow in 2015."

Industrial property sales across Australia in 2014 were worth $5 billion, their highest value since 2006.

The number and total value of sales has trended upwards since 2011.

CBRE also reports that Brisbane is experiencing "significant industrial construction", with over 250,000 square metres being developed and due for completion by mid-2015.

Brisbane's industrial supply, measured in square metres, is also at its highest point of the last ten years.

Supply has evened out between Brisbane North, Brisbane Outer South, the Brisbane Western Corridor, the M1 Corridor, and the Australia Trade Coast.

However, CBRE says Queensland's economy remains "unbalanced."

"The mega-LNG projects under construction in Gladstone are nearing completion, with the resulting decline in engineering construction yet to be compensated by the upturn in residential and non-residential constructions," it says.

"Economic growth is expected to improve slowly, driven by gradual strengthening in domestic demand and rising export income."


Author: Antony Scholefield

Latest News

OROTON GOES CLICKS AND BRICKS AS PROFITS SLIDE

TWO former Aussie lawyers have turned their passion for fashion into a $15 million dollar international business six ...

MANTRA'S SHARE PRICE SURGE INDICATES 'SUITORS ARE CIRCLING' THE HOTEL GROUP

THE rumour mill surrounding a high-level takeover of Mantra Group (ASX: MTR) is in full production with its shares su...

MELBOURNE CBD GEMS SELL FOR $17 MILLION, MARKING A NEW PROPERTY HOTSPOT

LITTLE Lonsdale Street in the heart of Melbourne's CBD has become a favourite for investors in 2017, following th...

CAN GOOGLE RECOVER FROM GLOBAL CONTROVERSY OVER ITS PROGRAMMATIC ADVERTISING SYSTEM?

IT'S the story that has rocked the world of advertising. The lucrative Google (NASDAQ: GOOGL) advertising system ...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter