Author: Barry Cawthorn, Managing Director Bawdens
Leading Industrial Agents, Bawdens, recently completed a study of the performance of the industrial market in 2022 as compared to 2021.
The company identified that business conditions and confidence in Sydney remains robust despite rising interest rates.
Total transaction volumes are up 6.5% in 2022 against the same period in 2021.
Purchaser activity and confidence remains very healthy with 31% of all transactions being sales in 2022 for the financial year to date as compared to 21% in 2021.
Bawdens Sales & Leasing Directors Robert Ally and Terry Saba also observed that whilst the healthy demand from purchasers to buy assets was continuing in 2022, recent interest rate rises were also not slowing growth in capital values for industrial property in Sydney so far in 2022.
They commented that the underlying shortage of serviced land and increasing replacement costs across the metropolitan area was continuing to drive prices upwards within 2022 transactions for the year to date showing price growth exceeding 10% for comparable buildings sold at the same time in 2021.
The continuing scarcity of suitable buildings to purchase, with vacant possession was likely to fuel potential for further price growth in 2022.
Category: Research, Trends & Insights
Topics: Industrial Price Growth, Rising Interest Rates, Data & Analytics
Solutions: Industrial Research