Kingston LGA Industrial Market Picks up in 2016
Industrial sales in the Kingston Local Government Area in Melbourne showed a steady improvement in 2016, with properties in the sub $1 million price range dominating activity, says Ray White Commercial.
Ray White Commercial Head of Research, Vanessa Rader, said in the Between the Lines Melbourne Industrial Kingston LGA January 2017 report that sales turnover grew 3.48 per cent on 2015 levels with sales of $86.54 million achieved in 91 transactions
“Demand for industrial property has been robust, however, the limited supply of quality, investment grade stock available to the market has been the major roadblock in reaching the turnover highs previously achieved,” Ms Rader said.
“Most sales during the 2016 calendar year have been in the sub $1 million price range, representing 72.53 per cent of the transactions completed.”
Ray White Commercial Oakleigh’s Ryan Amler said the average sale price in the Kingston LGA of $951,032 compared to the 2015 value of $862,196.
“The suburb of Cheltenham has yielded the highest turnover during 2016 with sales totalling $23.57million due to several plus $1 million sales, followed by Clayton South totalling $17.35million,” he said.
Mr Amler said with investment levels in 2016 overtaking the 2015 levels, capital values and land values have overall shown some positive increases.
“Capital value ranges typically can be vast and highlight differing positive and negative attributes of the property; Clayton South is a good example of this, where the range in values lie between $900 per sqm and $2,200 per sqm,” he said.
“Yields are currently represented by a broad range between 6.00 per cent to 8.50 per cent. These investments all depend on quality and lease covenant. The size range is also a factor with a broader investor pool within the sub $1 million price range which sometimes lends itself to lower yields.”