Colliers says investors and owner-occupiers are competing for industrial properties in the south-east Melbourne suburb of Glen Waverley.
The investment management company says five industrial sites in a small pocket of the suburb were sold in recent months, following many deals in the past five years.
It notes its south-eastern industrial experts, Andrew Charpot and Harry Larwill sold four of the five recent deals.
“This is a traditionally tightly held market with limited vendors, so when properties do come to market, they are snapped up fiercely,” Andrew says.
“Glen Waverley is in the epicentre of the eastern market and is heavily underpinned by the strong surrounding amenities and arterials,” he adds.
Harry says the owner-occupier market is increasing prices. He adds that logistics, manufacturing, and construction businesses have been booming over the past 18 months.
“The City of Monash industrial pocket has been starved of opportunity as vacancy rates in the inner east sit at 0.6 per cent for facilities between 1000 sqm and 3000 sqm,” Harry says.
“When property becomes available in this kind of market, it does not last long,” he adds.
He says the high prices and demand for this kind of property has been driven by numerous factors including low interest rates; dwindling supply of 500 sqm-3000 sqm standalone warehouses throughout the industrial sector; and the increased number of owner-occupiers seeking to purchase their own facility without being part of a body corporate.
Colliers says it has sold the following:
- 19 Aristoc Rd, Glen Waverley: A 1119 sqm industrial facility on 1491 sqm, sold for $3.8 million with vacant possession to a local owner-occupier who had missed out on several other opportunities in the area.
- 39, 39a Myrtle Street: A 2766 sqm property sold for $5.4 million to a local occupier who owns multiple blocks in the street, on a land rate of $1952 per sqm.
- 41 Myrtle Street: A 480 sqm industrial facility on a 1386 sqm site, sold for $2.62 million to a childcare operator on a land rate of $1890 per sqm and building rate of $5458 per sqm.
- 43 Myrtle Street: 676 sqm facility on 1345 sqm, sold for $2.75 million to a landbanker, on a land rate of $2,044 per sqm and a building rate of $4,068 per sqm.
- 65 Myrtle Street: 500 sqm facility on a 886 sqm site, sold for $2.35 million to an owner-occupier who missed out on nearby property, on a land rate of $2652 per sqm and a building rate of $4700 per sqm.
For more information on Colliers, click here.