Australia’s industrial property market ‘tightest in the world’

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All the major capital cities recorded falls in vacancy rates over the first half of 2022, led by Perth which registered a 130 basis points contraction to 0.5 per cent.

Like Sydney, Ms J-Baleh said, Perth was suffering from a lack of new supply and “essentially non-existent” speculative development.Melbourne recorded the smallest drop in vacancy from 1.3 per cent to 1.1 per cent, while Brisbane tightened from 2.3 per cent to 1.4 per cent and Adelaide from 1.6 per cent to 0.9 per cent.

Super prime rental growth was most pronounced in Sydney at 23 per cent year-on-year, followed by a 17 per cent rise in Perth and 14 per cent in Melbourne.“We expect demand to continue to outpace supply this year and into 2023, and we are seeing rental growth above CBRE Research forecasts,” said Cameron Grier, regional director of CBRE Industrial and Logistics in the Pacific.

Leasing deals struck over the past month include a global homewares business, The Décor Corporation, committing to a 14,244 sq m new distribution centre and head office at Frasers Property Industrial’s Rubix Connect estate in Melbourne’s Dandenong South.

 

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