Ahead of the Curve – Record Industrial Real Estate Price in Melbourne Amid Strong Demand
1 October 2018
Whilst the residential real estate market in Australia may have been cooling in recent months, the industrial real estate market appears to be experiencing the exact opposite.
Last week it was reported that family-run developer Pomeroy Pacific has paid $30.5 million for a 4.1 hectare industrial site next to Woolworths’ Victorian head office and distribution facility in Mulgrave in Melbourne’s south-east. The site was sold for $15.5 million just 18 months ago.
The premium paid by Pomeroy is another example of the dramatic rise in industrial land values amid a shortage of prime sites. BIS Oxford Economists recently forecast prime rents in Melbourne and Brisbane to rise over the next five years as developers look to pass on the cost of rising land values.
The sale set a record land rate for an industrial site of this scale in Melbourne’s Monash precinct. The record sales reflect the apparent shortage of available industrial land in Melbourne’s Monash precinct, which has created opportunities for developers to land-bank larger sites that offer existing income.
As we have discussed in our previous newsletters, the industrial & manufacturing sector is set to enjoy above-average growth in the coming years thanks to growing population and consumption.
Melbourne Ups Effort to Attract International Students
Last week the Victorian government launched a new Study Melbourne Student Centre in a three-story building in the city’s hip Hardware Lane. The centre – which will provide 24/7 student support, information and wellbeing services such as accommodation, health, employment, and legal problems – will also be home to a co-working space and career development hub, Outcome.life, as research shows making social connections is the most important determinant for international students to recommend where to study.
Victorian Minister for Trade and Investment Philip Dalidakis, who is launching the centre on Monday afternoon with more than 200 guests including students, educators, the start-up sector and foreign dignitaries, said it is about making international students “feel safe, supported and at home”.
“This student centre is an investment in our international education sector – a sector that supports 58,000 jobs and brings $9.1 billion into our economy,” he said.
The Victorian government is throwing its support behind the state’s $9 billion sector – Victoria’s largest export – as universities and states fight for their share of the $32 billion pie, and international students continue to flock to Australia in record numbers.
Continued inflows of international students into Melbourne are vital as the large student community provides massive business opportunities for savvy business owners who cater for the student’s needs.
There’s always exciting news in Victoria’s business community. For a confidential discussion about your next business transition telephone First Choice Business Brokers on 9899-1888.
By Lee Xie (Senior Project Manager)
We’d love to hear your opinion and continue the discussion. Please contact lee@firstchoicebb.com.au or 0405 459 528 to discuss.
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DISCLAIMER – Any financial information within this email has been compiled by First Choice Business Brokers to provide broad general information about business opportunities and the state of the market. First Choice Business Brokers makes no representations or warranties in relation to the financial information in this email. For purchasers looking to buy, we strongly recommend that you carry out your own investigation or consult a qualified accountant before making a purchase.
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