New South Wales - Market Review March 2021
Welcome to Link Property Services Q1 2021 market update
Despite the current global market conditions around the Covid-19 pandemic, 2021 has started with a great deal of market activity across both the South Sydney and Western Sydney industrial markets. It seems clear industrial is the “darling” asset class which continue to outperform both the commercial and retail sectors.
The leasing market has seen rents remain stable across Metropolitan Sydney, with incentives across most sectors beginning to tighten and decrease as a result of a surge in demand. Take up has been relatively strong across all markets and whilst 2020 saw little activity in the 10,000sqm + leasing market, it is a very different story this year with substantial take up of space.
Land sales have also featured strongly as developers & fund managers sure up their development pipelines & owner occupiers look to build as a result of minimal existing buildings coming to the market for sale. The south west Sydney and outer western Sydney markets have seen substantial activity in this sector, particularly around the Western Sydney Airport precinct. Link have sold almost $500m of development land in Western Sydney in the past 24 months and we see the continued imbalance of supply and demand putting further upward pressure on prices. We expect the land development market will continue to be the most active sector in Sydney over the next 12 months.
Some of the significant deals & highlights for Link this quarter include:
24-26 Bowden Street, Alexandria – 1,020 sqm older style, freestanding office/warehouse on 1,201 sqm site sold off-market for $7.8m
32-36 Maddox Street, Alexandria – 1,859 sqm building on 1,701 sqm site sold at auction after more than 50 bids to a local owner occupier for $13.5mLot 2 Digitaria Drive, Gregory Hills, a 4.15ha site sold to a developer for a precinct record price, who has plans to develop a mixed use bulky goods precinct
5 lots of B5 zoned land at Digitaria Drive, Greogry Hills for a total of just under $25 million
Leasing of 5,034 sqm at Unit 1, 5 Aero Road, Ingleburn to Danix Haulage
Sale of 3.43 hectares at 110 Avon Road, Bringelly for $4.9 million
Reaching 34 or 36 lots sold at Gregory Hills Industrial Estate for a total of over $90 million in sales
We also had settlement for the $10.25m sale of 17 Yulong Close, Moorebank to Great Ocean Foods, a sale which initially fell over at the beginning of Covid and was resurrected in Q3 2020 as the Australian economy began to improve
We firmly believe the industrial markets across Sydney will continue to improve as confidence and optimism increases, particularly as the vaccine continues to roll out globally, restoring confidence in markets abroad.
By Artie Kalpidis
Link Property Services
