Record sales in northside Brisbane industrial market

1 June 2015 | Ray White Media Release

Interest and activity in industrial property assets in the sub $5 million price range on Brisbane’s northside has grown, with a record 131 transactions in 2014, according to Ray White Commercial.

Ray White Commercial (Qld) Associate Director - Industrial Transactions Dan Costello said a combination of low interest rates, self-managed superannuation funds (SMSFs) and private investors looking to diversify, as well as owner-occupiers looking to shelter from possible rising leasing costs, had resulted in the strong sales surge. 

Mr Costello said that during the 2014 calendar year a total of $180.6 million in sales was recorded in the sub $5 million price category.

“In 2014, we had the highest number of industrial sales recorded historically on Brisbane’s northside with 131 transactions, with the bulk of sales in the outer 15km plus from the CBD region,” he said.

“During 2014, the 15km-plus market resulted in $50.90 million transacting, which is up 54.93 per cent on 2013 levels. In terms of value, this increase demonstrates the desire to enter the market at a price point below the average northside average of $1.38 million.”

The top sale price achieved was $2.17 million for a brand new industrial building at South Pine Rd, Brendale.

Ray White Commercial Head of Research Vanessa Rader said in her Between the Lines Brisbane Northside (sub $5 million market) report for May 2015 that in the inner precincts less than 5km from the CBD, $60.4 million changed hands with a high average sale price of $1.89 million.

“This is a symptom of higher land values in this inner ring and more robust demand for space across small businesses, which puts pressure on the leasing environment, encouraging more private investors into the market,” Ms Rader said.

“The outer region (15km+ from CBD) is also the recipient of high levels of investment, aided by the lower price point with the average sale price $1.21 million.”

Mr Costello said that during the first quarter of 2015 there had been 21 transactions take place in the region, totalling $23.90 million.

“The majority of sales in the 5–10km radius had an average sale price of just $775,000, which strongly represents smaller industrial units,” he said.

“The larger value transactions have come from the inner (less than 5km radius) where the average sale price achieved was $1.36 million, not dissimilar to the outer 15km plus precinct which has resulted in the same average sale price.”

Mr Costello said prime yields demonstrating the best results were the Australia Trade Coast region, which was currently averaging 7.75 per cent within a range of 7.25 per cent and 8.50 per cent.

“While a strong driver for investment has been the owner-occupiers either via a SMSF or as a business; private investment activity still continues at a high level,” he said.

Further enquiries: Dan Costello
M: 0417 733 470