April 2017 – Melbourne Industrial Monash LGA

10 April, 2017 / Vanessa Rader and Ryan Amler

As 2016 ended the anticipated dampened levels of activity were realised, as sales volumes were unable to reach the highs achieved over the past three years. This more limited transactional volume reflected the lack of stock available in the market rather than subdued demand levels; this further emphasised by the growing achievable capital values.

The continued improvement in the economy has resulted in employment levels increasing as well as indicators such as industrial production and exports; this has seen both owner occupiers together with a vast range of investors competing for industrial investments.

Low interest rates and limited returns from other investment types have motivated this new class of investors which has put upward pressure on capital values and kept yields at a competitive level. Across the Monash LGA interest remains from both owner occupier and private investors however the investor groups now tipping the scale, given the affordable access to funds and limited alternative options. Investment has predominately been in the sub $2.5 million price point however this year we have seen the continued interest in the smaller asset price point of sub $1,000,000 which suggests growing range of investors looking to diversify funds.

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