Land sales at stage four of the Northlink Industrial Estate in Wangara have been brought forward in response to strong demand for the industrial lots from relocating businesses and investors, according to selling agents.
Raine & Horne Commercial director Anthony Vulinovich said with only a handful of lots still available in the estate’s stage three, selling had started on the 25 lots in stage four where seven of the sites had already been sold and three were under offer.
Mr Vulinovich said a broad push from owner occupiers, investors and tenants was behind the sales.
“The estate places itself well for occupiers who want to take advantage of lower interest rates to develop and customise a new facility,” he said.
“We are finding a number of developments are being built on a design and construct basis for businesses that are looking to expand.
“Developers or investors are building for those buyers but we have also established businesses that are trading up to newer properties.
“Lower interest rates have introduced affordability and businesses changing from renting their property to ownership is also behind some of the sales.”
Civil work has started at stage four with titles expected in April.
Lot sizes range from 1100sqm to 3ha with prices between $300/sqm and $390/sqm.
Mr Vulinovich said the attraction of a new estate or the flight to modern property was also helping leasing demand.
“Some tenants are trading from properties that have become redundant, in terms of size or age and because there’s a competitive market, they are being offered very affordable rates to move into new properties in new estates,” he said.
“We can offer leasing packages in a new estate on a similar rate to establish properties that may be 15 years old.
“It’s similar to the flight to quality that occurs in the office markets.”
The West Australian – April 15, 2015