Figures

Figures Melbourne Industrial and Logistics 4Q23

January 23, 2024 5 Minute Read

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Key Points:

‒Australia’s e-commerce penetration rate is at a stabilised level and equates to 12.8% (or AUD 54 billion over the past 12 months). 

‒Gross take-up in 4Q23 has increased compared to the last two quarters, totaling c.860,000 sqm, which is close to the 5-year quarterly average rate (c.900,000 sqm) – owing to pre-lease transactions, particularly in the Melbourne market.

‒Around one-third of the total new floorspace to be delivered in 2023 was completed in 4Q23, with new supply for the CY2023 totaling a record high of 2.9 million sqm.

‒Although rental growth was recorded over the quarter, with the supply-weighted average super prime grade assets increasing by 2.9% q-o-q, the rate of growth is beginning to slow significantly for some markets.

‒The national average midpoint yield for super prime grade asset now stands at 5.77%.

‒Investment sales for income producing assets (≥ AUD 10 million) in 4Q23 totaled AUD 1.7 billion.