This article is from the Australian Property Journal archive
A SIGNIFICANT industrial property located in Melbourne’s Keilor Park has traded for more than $12.5 million, marking ongoing demand for high-quality sites in the inner north precinct.
The 9,368sqm site at 79 Keilor Park Drive, around 15km north-west of the CBD, boasts 99-metres of frontage and represents one of the last remaining vacant allotments in the area.
Mitch Purcell, Corey Vraca, and Nick O’Brien from Colliers managed the off-market sale.
“Melbourne’s North has approximately 937 hectares of active land supply remaining in the current market, with core and outer North sub-markets such as Tullamarine, Epping, Craigieburn and Mickleham accounting for most of the current active supply,” said Purcell.
The property sits adjacent to MAB Corporation’s $300 million TransLink Business Park, and benefits from connectivity to major arterial roads such as the Calder Freeway and Western Ring Road.
“Due to significant levels of yield compression and strong demand from institutional groups, land values in Melbourne’s North have surged, with a remarkable 75 per cent increase recorded year on year to 2022. This highlights the robust investment potential and growth trajectory within the region,” said Vraca, associate director.
The site is also ideal for the development of a high-end collection of industrial units, thanks to its close positioning to a well-established residential catchment.
“Land values in Melbourne’s North submarket have effectively doubled over the past 18 months for lots ranging between one to five hectare lots, reflecting the exceptional demand and investor confidence,” said O’Brien, national director at Colliers.
Savills Australia’s latest Spotlight Industrial Shed Briefing for Q2, found that the industrial property boom may have peaked as rental growth remains stubborn across most core markets and vacancies rise on the east coast.
While industrial investment activity was recently given a major boost by Barings and REST Super’s recent 12-asset $780 million portfolio acquisition from Goodman Group.
In Melbourne’s Oakleigh, an industrial supersite recently changed hands, delivering a massive $42 million windfall for the Taiwanese vendor, who bought the site just last year.
