ISSUE 168 | APRIL 2024 | 02 9630 8000 Disclaimer Notice: Neither Bawdens, nor the publishers and editors of articles in this issue accept any form of liability, be it contractual, tortious or otherwise, for the contents of this newsletter or for any consequences arising from its use or any reliance placed upon it. All the information contained in this publication has been provided to us by various parties. We do not accept any responsibility to any person for it’s accuracy and do no more than pass it on. All interested parties should make and rely upon their own enquiries in order to determine whether or not this information is in fact accurate. Customised relevant marketing means maximum results. We are the only agency with real time database management. Instagram Facebook LinkedIn YouTube Simply search | PAGE 12 MARKET INSIGHT SPECIAL Industrial Land Values Outlook In 2023 rising construction costs and investment yields have tested feasibilities. As a result, land values have steadied in the SME market as developers and owner occupiers have exercised more caution. Currently land values in more central western suburbs range between $1,200 - $1,500 psm for lots with an area of less than 10,000m2. With most inner west and central west locations offering no availability of sites with an area of less than 10,000m², this lack of developable sites will ensure that current pricing will remain broadly unchallenged, despite the possibility of continued upward pressure on yields due to rising interest rates. Land values will be further supported from the recent and continuing growth in net rentals in the year ahead. These factors, when combined with eventual interest rate certainty, will see a return of owner occupier confidence in long-term appreciation of industrial property resulting in increased demand in the medium term.
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