THE PROPERTY DEVELOPMENT REVIEW
What market sectors do you anticipate being most in demand over the next six months? We believe the industrial sector will continue to be the star performer. More and more developers are building on spec and leasing the product prior to completion. The rise in land values and construction costs is being offset by the rise in rent and reduction in incentives. There is still pent-up demand from owner occupiers and developers for industrial land. We are currently marketing two DevelopemntWA industrial land estates at Meridian Park, Neerabup and Crossroads Industrial, Forrestdale. The stages are being sold off the plan prior to titles, with huge enquiry waiting on the release of the next stages in both estates. What advise do you have for any prospective developers in the current climate? From an industrial perspective there is still a high demand for industrial space, both from tenants and owner occupiers. Due to the lack of stock in the market we are seeing many developers having success with speculative builds. Most of this space is being leased / sold prior to completion. We also believe that land rates still provide great value. We will be launching new stages in Meridian Park, Neerabup and Crossroads Industrial, Forrestdale in the next few months This will give developers an opportunity to purchase industrial lots off the plan at competitive rates and use the time prior to titles to attract tenants / buyers.
May / June 2023 – 103
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