Industrial assets have certainly bucked the trend and continue to perform exceptionally well in the south-west of Sydney according to Mark Ammoun of Commercial Bankstown. “A large cohort of owner occupiers is still aggressively seeking assets to operate their businesses,” says Mark. “Demand is particularly strong for freestanding assets, resulting in a large imbalance between supply and demand.” The chronic supply constraints across the Bankstown area have generated outstanding sales and leasing results for property owners. That said, higher interest rates have resulted in a softening of investor activity, with values of assets on medium to longer term leases being adversely affected. “Buyers are taking a wait and see approach – at least until we see certainty around interest rates crystalising,” says Mark. “When interest rates return to something resembling a resting rate, we will have a better idea of the ‘normal’ investor appetite.” The sale of 97 Yerrick Road, Lakemba – a 460 square metre freestanding warehouse plus office, for $2.7 million confirms that well-priced and well-located properties are continuing to command buyer interest. Mark Ammoun m.ammoun@rhc.com.au Bankstown Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $200-$300 $180-$250 $450-$1,000 Vacancy 8% 1% 5% Yields 7% 4% 7% Rates p/m² $3,500-$5,500 $4,000-$6,500 $5,500-$15,000 Current market conditions $2,700,000 97 Yerrick Road, Lakemba Recent Notable Transactions SOLD $324,000 p.a. + GST 119-125 Hume Highway, Greenacre LEASED New South Wales | 11
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