According to a research report released by CBRE, over the past 12 months, rental prices for industrial warehouses in Sydney have increased by nearly 40%, surpassing AUD 200 per square meter for the first time, with a vacancy rate of only 0.5%, which has attracted attention.
In the inner south of Sydney, areas such as Mascot, Rosebery, and Zetland are seeing a rise in warehousing demand, and developers including Goodman Group and Charter Hall are starting to construct multi-level logistics facilities to expand or create new warehouse projects.
Strong rental growth has also appeared in Melbourne, with a year-on-year increase of 23.4%; the continuous surge in asking rents is not limited to the east coast market, as industrial rents in Perth reached an annual growth of 30% at the end of March after increasing by 4% in the first quarter.
Meanwhile, due to delays in many projects caused by adverse weather and planning approvals, CBRE predicts a further 10% increase in Sydney’s rents and a 13% increase in Melbourne’s rents this year; another report by JLL found that rental growth for prime industrial properties across the country increased by 25% in the 12 months ending in March, the strongest annual rental growth in over 30 years. (The image is related to JLL and the Australian Financial Review)