2016 is set to continue the favourable economic fundamentals seen in 2015 across the state of Victoria. Continued increases in GSP will show a benefit to employment and population growth which has also been aided by the lowering of interest rates and favourable exchange rates. This has had a beneficial knock on affect across the broader industrial market resulting in strong demand for both purchasing and leasing assets keeping values and yields competitive.
Monash LGA has witnessed strong levels of demand particularly in the sub $1.5 million price range during 2015 and 2016 to date, highlighting this market a strong private investor and owner occupier location. To date, this local demand has resulting in favourable capital values with a reduced number of days on the market.
Sales volumes across the Monash LGA maintained a high level in 2015 and have yielded a strong start to 2016. During 2015 $225.78 million changed hands in this region representing 113 sales, while the volume was down 9.28% to $248.89 million the number of transactions were the same as 2014. During 2015 there were only five sales which were recorded over $10 million, 2014 recorded three sales and so far this year there has been one, being the $13.8 million sale of 161-169 Jells Road, Whellers Hill on a substantial 8,106sqm of land. There has been 14 sales recorded in 2016 to 30 April which represents $41.54 million which is an encouraging start to the year particularly given the absence of foreign investors after their active prior two years. The average sale price during 2015 was $2 million while 2016 to date is just shy of $3 million, the most active price range being over $1.5 million this year which is in contrast to 2015 where the industrial unit market in the sub $1million price range yielded the greatest volume of transactions.