Head Office

3 Ordish Road
Dandenong South

Eastern Office

Suite 1, 333 Wantirna Road
Wantirna

Phone

03 8788 9000

Market Update

January – March 2016

A subdued quarter with regard to total volume however the key metrics were strong.

The first quarter of 2016 was defined by an increase in leases as a percentage of total transactions and a marked step up in our average sale price.

 

  • Sales stock to market was limited by the tail end of summer and the timing of numerous holidays throughout the quarter.
  • Average factory sale price increased 46% to nudge over the $1,000,000 mark.  This was due to quality new development. The average per square metre rate is now over $1,400.


WHAT'S HOT?

 

Factories Sales and Leasing up to 1,000m2
This sector is buoyant and accounts for 80% of all transactions. Driven by an underlying confidence these business are not only upsizing to accommodate growth they are also taking the opportunity to purchase their own premises at historically low interest rates.

 

Investment Sales
Factory investment yields remained steady in the mid 6% range. We are limited only by the availability of stock and suggest that this yield will compress further given the direction of interest rates.


Land sales as previously mentioned are tightening due to a lack of supply. Only 7 land sales occurred for the quarter. This statistic is very important as it will ultimately drive both rental and sale prices as new product to market is most likely to diminish in 24 months' time.


As always exciting times through our corridor and we welcome your call to provide specific advice to your circumstance.




Ben Cooper
Managing Director
Phone: 03 9791 4800
Email: bc@cameron.com.au