Serviced industrial land is becoming a rare commodity in Perth, with prices rising sharply and large lots in short supply as owner-occupiers flood the market.
Jones Lang LaSalle national director of industrial services, Richard Parry, said it had become increasingly difficult to secure a site of more than one hectare in the traditional southern industrial areas of Kewdale/Welshpool, Canning Vale, O’Connor and Bibra Lake.
A similar pattern was emerging in northern industrial suburbs, he said.
“Anyone looking for a new build over 4,000sq m is struggling to find a developer who can accommodate such a requirement because they are unable to source the land,” Mr Parry told WA Business News.
Mr Parry believes the recent trend towards owner-occupier purchases had resulted in industrial estates, including Cockburn Commercial Park, Wangara’s Enterprise Park and Hammond Road in Jandakot, being sold as small lot industrial subdivisions.
Colliers International director of industrial agency Wayne Chorley said the high demand for all types of industrial land, which had pushed prices up by more than 50 per cent last year in areas such as Malaga, had caught everyone by surprise.
The resulting delay in getting serviced industrial land onto the market was keeping prices high and prompting new sales records.
“Records are being set all over Perth. Malaga has just achieved $440 per square metre, Balcatta has hit $620/sq m and a small lot in an Osborne Park side street just got $800/sq m. The owner occupiers are really pushing prices up,” he said.
Mr Chorley said he recently sold a 1,300sq m industrial lot at Hazelmere, 15 kilometres south-east of Perth, for $250/sq m, which three years ago would have struggled to sell for $40/sq m.
In Bibra Lake, Colliers is expecting to receive at least 10 tenders this week on the 38ha Amcor paper and packaging plant.
Interest has been high from local and eastern states buyers, with the 34ha hectare surplus land on the site suitable for subdivision.
Mr Parry said developers who were able to source large industrial lots reasonably close to the city would be in a prime position to secure larger national tenants.
