Balanced Market Performs As Predicted
The last six months of 2019 performed as anticipated with pleasing results.
- Volume remained steady as did the split between sale and lease transactions
- Average square metre rates and pricing remained constant. A 7% increase in average sale rates per m2 was noticeable and can be attributed to popular small factory construction along popular arterials.
- Land sales rocketed due to an immense take up predominately in Cranbourne and Clyde North. The absorption increased 100% on anannualised basis from our last update.
Yield rates compressed again as expected averaging 5.53% for the half. Yields will further compress before our next report. Investment sales were limited only by supply as money struggled to find a home as opposed to being freed up via a sale, volume was down 30%.
What’s Driving 2020?
Although we remain busy along the EastLink corridor we are excited by the activity in Cranbourne, Clyde North and Pakenham. Investors should take note as take up is solid and the m2 rates on both sales and leasing are encouraging. These areas are the new frontier.
We’d be happy to discuss these opportunities directly if you have a moment.