Sydney, 28 April 2016 – Limited sale stock in Sydney’s central western industrial market is fuelling a spike in buyer demand, with the recent auction of three strata units in Holroyd achieving a record sale price in the area.
Located within a complex of six office/warehouse strata units, the properties at 2-6 Peel Street comprise unit two - a 451sqm unit with six car spaces; unit four – a 235sqm unit with three car spaces; and unit five – a 235sqm unit with three car spaces.
Holroyd Property Holdings secured units four and five for $820,000 and $715,000 respectively, while a private purchaser acquired unit two for $1.465 million.
CBRE’s Raj Chaudhary said there was strong interest in the properties through the sales process.
“We received over 80 enquiries throughout the campaign, with a crowd of more than 40 people attending the onsite auction,” Mr Chaudhary said.
“Collectively, the three units sold at approximately $1 million above reserve price, with each property surpassing $3,000 per square metre – representing the highest industrial per square metre building rate ever achieved in the area.”
Mr Chaudhary went on to say the record result was evidence of the growing demand for industrial property in Sydney’s central west.
“The withdrawal of approximately 100,000sqm from the central west industrial market, due to rezoning and conversion to residential, is reducing supply in an already tight market and increasing competition for existing stock,” Mr Chaudhary said.
CBRE’s Nick Zenonos - who recently joined the firm’s expanding industrial team on the back of strong growth within the South Sydney strata market - said the record sales result was evidence of similar stock shortages experienced in South Sydney.
“Over the past 12 months, the South Sydney industrial strata market has experienced a significant increase in price per square metre on average from $3,020 to $3,490,” Mr Zenonos said.
Furthermore, infrastructure projects such as WestConnex are placing even further demand on the central west industrial precinct, where the market is now experiencing similar conditions to the South Sydney industrial strata market.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
