Cygnet West to deliver industrial land insights for DevelopmentWA
Cygnet West’s Valuation, Research and Advisory division has been appointed by State Government land and infrastructure agency DevelopmentWA to provide market intelligence and insights on Western Australia’s industrial land sector.
The appointment will have an initial term of two years and will see Cygnet West deliver reports detailing the number and availability of serviced and development-ready individual vacant industrial lots in WA from private developers as well as the Industrial Lands Authority (ILA).
Perth, Peel and the Greater Bunbury Region will be analysed on a quarterly basis, while annual reviews will be conducted in Geraldton, Kalgoorlie-Boulder, Albany, Port Hedland, Broome and Karratha.
The appointment aims to monitor fluctuations in industrial lot supply, evaluate the types of product available for sale, measure the market’s absorption of available lots, assess the adequacy of supply, examine the ILA’s market share and provide an overview of WA’s industrial land market.
Cygnet West’s appointment follows a competitive tender process conducted by DevelopmentWA in late 2021. Cygnet West Director Valuation, Research and Advisory John Del Dosso said historically, Perth and other regions within the state had been ill-prepared for significant increases in industrial land demand, as illustrated by the economic and property impacts of the resource sector investment cycle of 2003 to 2016.
“The subsequent absorption of available industrial space and land in a market of limited stock and short-term supply saw rents and vacant land prices surge between 2005 and 2007,” Mr Del Dosso said.
“This lack of preparedness and the market’s inability to accommodate the demand likely constrained business activity and economic growth, as the State and market adjusted to meet the demand.”
Mr Del Dosso said while the timing and scale of demand surges could be difficult to predict over the medium and long term, there were avenues for stakeholders and market participants to better prepare to respond when significant shifts in supply and demand occurred.
“Regular surveys of stock, typology of stock, current market depth and absorption rates can be overlaid with analysis if historical trends to provide stakeholders a barometer to assess the market’s balance,” he said.
“The monitoring of greenfield, infill and brownfield industrial zoned stock and serviceability is also important to assess longer term supply adequacy.
“DevelopmentWA, through its business unit the ILA, plays a pivotal role in ensuring industrial land supply in Western Australia.
“As such, we understand the importance to DevelopmentWA of maintaining thorough oversight of the state of the industrial land market and the broader industrial property sector.”
Mr Del Dosso said Cygnet West was uniquely positioned to undertake the analysis with its market- leading team of industrial property experts.
John Del Dosso
Cygnet West Director Valuation, Research and Advisory Services Enzo Evangelista will lead the consultant’s team, with support from Associate Director, Research & Urban Economics Quyen Quach.
“We have been able to offer DevelopmentWA a team that is supported by the right balance of industry expertise, resources, corporate strength, and reputation, and we’re delighted to have been appointed to support the agency in an area so important to the ongoing growth and economic prosperity of our State,” said Mr Del Dosso.