Thirteen development sites at the Westside Industrial Estate in Truganina have sold for $21.1 million in four weeks as developers back both the estate and Melbourne’s key industrial market.
The lots, totaling 12.8 hectares, zoned Commercial 2 and Industrial 3, and ranging in size from 2,000 square metres to 5.7 hectares, sold to developers, with ten lots, of the remaining 21 lots, currently under offer.
Savills Victorian Industrial chief, Greg Jensz, who negotiated the majority of transactions with Michael Green, said the sales were both a very encouraging indicator of the new year’s market and a reflection of the high regard developers had for well-located property in the west.
"The fact that developers are prepared to pay these prices - $150 to $200psm - and still make it stack up is a sign of great confidence in the market," he said.
"It is also a reflection of the supply and demand of sites, with strategically located, quality land in the west, becoming increasingly difficult to find and developers are well aware."Located on the corner of Leakes Road and Palmers Road, both of which carry considerable traffic, the estate is also close to the Princes Highway, Western Ring Road and Westgate Freeway.
The yet to be developed, 40 hectare, estate is set for completion of subdivision by late 2016 and will include a mixture of warehouse, office and bulky goods construction which will serve one of Melbourne’s most rapidly expanding populations.
Mr Jensz said given the level of demand he anticipated selling the remainder (2000sqm to 2.5ha) of the $160psm plus Commercial 2 and Industrial 3 zoned lots quickly.
According to Savills latest research - Melbourne Industrial Briefing January 2016 - land values range from $130 to $250 a square metre for land between one and five hectares.
