Industrial action boosts Melbourne's south-east
Industrial property sales in the south-east accounted for 50 per cent of the sector's turnover last year, according Savills Australia.
While Melbourne's south-east saw the greatest number, the overall value of transactions across the metro area fell over the year.
Recent sales include 69 Studley Court in Derrimut for $20 million and 37-49 Browns Road in Clayton for $19.55 million.
Sales to June were $21 million below the previous year, Savills' Industrial Spotlight said.
The Pellicano Group and ISPT have moved to take advantage of the south-east's more robust performance, offering 21-hectare englobo subdivision for sale with expectations around $16.5 million. The site, in Dandenong's Innovation Park, is being sold by Jones Lang Lasalle's Kosta Filinis and Cameron Industrial's Ben Cooper, and has approvals for a two-stage, 36-lot subdivision.
Speculative development and competition from prime backfill and sub-lease space has pushed Melbourne's industrial vacancy rate to its highest level since April 2011, Knight Frank research shows.
Despite the rise, vacancy rates remain below their historical average.
There was 496,000 square metres of vacant space available in the three months to June - an increase of 86,000 square metres on the previous quarter.
Nine speculative developments were under construction, which added about 48,000 square metres over the same period, the research found.
"The industrial market is now at a stage where rents may grow more in line with construction costs [3 per cent to 4 per cent per annum]," Savills advised.