21/03/2006 - 21:00

Industrial property heats up

21/03/2006 - 21:00

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Hot on the heels of Perth’s residential land grab are industrial land and property buyers snapping up land and office-warehouse developments in the burgeoning suburbs of Wangara, Balcatta, Malaga and East Rockingham.

Hot on the heels of Perth’s residential land grab are industrial land and property buyers snapping up land and office-warehouse developments in the burgeoning suburbs of Wangara, Balcatta, Malaga and East Rockingham.

Pre-sales are common with many industrial and commercial developments purchased off the plan before agents have a chance to advertise, with buyers often paying above the asking price to avoid missing out.

Only new listings are being advertised, according to Colliers manager industrial agency Terry Manage.

Mr Manage said pre-sales were very common now as the short supply of stock was driving up demand and creating a seller’s market, with owner occupiers making up a good number of current and potential buyers.

“It’s a great time to sell but a miserable time to buy. Our services are being retained by buyers rather than sellers and I spend more time now looking for people wanting to sell than ever,” he said.

Colliers International is also involved in new industrial projects having just sold a major development in Wangara “off the market” and expects another office development in Erindale Road, Balcatta to fetch a healthy price. 

In response to the growing needs of business, LandCorp WA’s biggest provider of industrial land will be working on several industrial land releases over the next six months. They include two new stages at Enterprise Park Wangara, new releases of Stage Two East Rockingham Industrial Park and precinct one at Hope Valley Wattelup, between Fremantle and Rockingham.

The shortage of developments coupled with higher land and building costs are encouraging new and established owners to charge higher rents.

Tenants are now paying between $45 and $75 per square metre and Mr Manage cannot see prices dropping in the near future.

“Rents have been pretty stagnant in the last two years but with stock being in such short supply, I can now see a time in the near future where rents will go up to $100 per square metre,” he said.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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