Industrial land sales hit all time high.
The key term in property for 2023 was land sales. Demand peaked in 2023, with industrial estates across the Perth metropolitan seeing unsurpassed activity in ‘off-the-plan’ sales.
As reported in The West, Cygnet West Director of Industrial Agency, Greg O’Meara, advises that vacant industrial land sales could be three times larger than WA market data indicates. While transactions reached more than $100 million last year, our experts estimate that sales pending settlement upon completion of various amount to a staggering $350 million.
Cygnet West research demonstrates 30 hectares of industrial land reached settlement in 2023, but 80 hectares contracted are yet to settle.
“Estates in Wattleup, Southern River, Forrestdale and Muchea have sold extremely well during 2023, with estate construction in progress and settlement set to place late next year upon completion. As a consequence of construction lead times, sales figures will not give a true reflection of the market”, says Mr O’Meara.
Cygnet West is proud to have been at the forefront of industrial estate sales, achieving over 90 land transactions for an aggregate area of over 60 hectares. Our sales have led to a market share of 50% in this sector, having sold more vacant industrial land than any other agent.
Lack of opportunity in traditional industrial suburbs such as Welshpool and Canning Vale means customers are opting to move to the next concentric circle. The demand for space is underpinned by Western Australia’s robust economy, with established businesses seeking land in desirable locations to achieve future growths.
Successful sales at Orian Industrial Park in Wattleup and Southern River Business Park are a clear example of this. Southern River Business Park sold 52 prior to the commencement of civil works at an aggregate sale price of over $30 million.
Cygnet West expects a contributing factor to sales in outer areas of Perth is created by the record low vacancy rate of 2.7%.
“It’s creating a sense of urgency for businesses that do not want to be left ‘homeless’ at the end of their lease term.”
We expect to see non-traditional vacant land sales continue in 2024 as businesses look to control their own destiny and develop for themselves. Industrial builder-developers are set to benefit from the projected population growth in WA, which continues to drive industrial demand in the state.