This article is from the Australian Property Journal archive
TWO undeveloped industrial lots in Melbourne’s western suburb of Truganina have sold for a combined price of $12 million.
The industrial-zoned blocks, located at 44 and 52 National Drive, are the last two undeveloped lots on the street, sitting around 22.4km west of the CBD.
Steel and aluminium fencing company Triple Star Fencing purchased the 7,232sqm 44 National Drive for $6,090,000.
While plasterboard and external cladding specialists BoardPro purchased the 7,241sqm 52 National Drive property for $5,980,000.
Lachlan May, Cameron Giles, Fergus Pragnell and Tom Murphy from CBRE brokered the deals on behalf of private vendors.
“Interestingly, both sites were sold by vendors who had originally purchased the land to owner-occupy but decided to sell having seen uplift in land values,” said Giles.
“We are seeing a trend where owner-occupiers are active in purchasing titled land in Melbourne’s West while developers are preferring to purchase land ‘off the plan’ with a 12 – 24-month settlement timeframe.”
The properties also sit within close proximity to Goodman Group-owned warehouses, Charter Hall’s Core West Estate and Aliro’s super-prime facilities.
“Developers are faced with higher land prices, increasing holding costs and elevated construction costs,” added May.
“For those reasons, developers are being outpaced by owner-occupiers. With the lack of new speculative development, we think this may cause another building supply shortage by 2025 with similar record low vacancy levels as seen in Q1 2023 in Melbourne’s west.”
Back in September, industrial and logistics developer Logos announced it would capitalising on the shortage of land in the area by putting a purpose-built project through a $250 million turnkey estate on the market.
