INDUSTRIAL PROPERTY SALES SOAR

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."

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

Australia's top 20 cannabis companies

Australia's top 20 cannabis companies

Whether it’s a “gold rush” to secure registration...

National Optical Care sets its sights on doubling to 100 practices by 2024

National Optical Care sets its sights on doubling to 100 practices by 2024

Rapidly expanding healthcare group National Optical Care (NOC) is o...

Westpac's $37.8 billion super fund arm BT to merge with Mercer

Westpac's $37.8 billion super fund arm BT to merge with Mercer

Westpac (ASX: WBC) has struck two deals with Mercer Australia today...

Hospitality mogul Glenn Piper to transform Hook Island into "world class hospitality experience"

Hospitality mogul Glenn Piper to transform Hook Island into "world class hospitality experience"

Sydney hotelier Glenn Piper has snatched up his third hospital...