$1bn property record in Melbourne23 July 2015 by News Desk
The industrial property market in Melbourne has reached a record high in the past 12 months.
More than $1bn in industrial property was sold in Melbourne in the past year with private investors accounting for 40% of sales. In addition, around 650,000 square metres of property was leased during the same period.
A new survey reveals that $1.47 billion of industrial property was sold in the year to June 2015 with the high levels of private finance underscoring confidence in the market.
Private investors, driven by low interest rates and high returns were responsible for 40% of sales. Owner-occupier purchases represented 12% of all sales valued higher than $2m. Sales of property under $20m accounted for more than 50% of all sales.
Industrial leasing deals recorded their highest level above the decade average with 648,324 square metres leased, compared to 497,238 square metres leased in 2013-14, according to Savills July 2015 Melbourne Industrial Briefing.