Turnover of Brisbane industrial assets exceed $1b

The turnover of Brisbane industrial assets exceeded $1 billion in the year ending June 2019, up 30 percent on the previous period, reported Savills.

It is the second highest volume of sales on record over the past 10 years. Offshore investors were the most dominant purchaser type, accounting for 27 percent of total industrial assets transacted in this period. The core market yields (Trade Coast 5.8 percent; Southside 5.9 percent) demonstrate the premium that offshore buyers are prepared to pay to enter the Brisbane market. Average yields have compressed 60 basis points for the year to June 2019.

Supply is expected to accelerate in 2019 to 304,000 square meters (3.27 million square feet) including new developments and stock under construction, which is due for completion in 2019. Land values across all precincts have generally trended upwards. The average land value for the year on year to June 2019 increased by 15 percent, to $356 per square meter (price per square foo