Director’s Message – February 2020
It’s 2020, lets get moving!
Melbourne’s suburban markets are experiencing a refreshed period of desire and opportunity. The investor and owner occupier demand in the industrial market remains strong into 2020 despite funding constraints. Yields are being driven toward 5% and in some cases levels below, resulting in record levels for Melbourne’s greater south-east.
As we service a diverse mix of specialist property sectors including retail, office, healthcare, industrial and logistics; we believe that confidence in the economy largely remains the hurdle for participants seeking to invest in property. However, the scarcity of development ready sites counteracts this fact ensuring buyers remain hungry.
Melbourne’s industrial south-east, which includes traditional industrial suburbs such as Dandenong, Braeside and Springvale, are areas now home to vast warehouse and retail developments.
The precinct’s popularity, with valuable transport links and a skilled available workforce, contributes to land value growth within the region. Manufacturing is still the south-east’s dominant land user, accounting for 32% of land take-up in the decade up to 2019, followed by retail, transport, postal
Looking forward we see a healthy level of appetite for investments and undervalued sites that will encourage vendors of commercial and industrial property to take advantage of historically low listing numbers, therefore low competition.
As Featured In The Property Preview, Edition 1 2020 – Available Online Now!