We have been inundated with enquiry for owner-occupier opportunities with nearly 80% of available units selling to that single cohort in Melbourne's south-east.
80% of new units sell to owner-occupiers
Melbourne bayside developer, Summers Industries, has put several office warehouses on the leasing market following the sale of 26 out of 27 speculatively built industrial units at its circa $12 million Braeside business park.
The units have all been sold before completion as the south-east industrial market undergoes a striking resurgence driven chiefly by Victoria’s population growth as well as a renewed trend to owner-occupier sales.
Savills Notting Hill office Director, Gareth Jackson, said the firm’s south-east office had been inundated with enquiry for owner-occupier opportunities with nearly 80 percent of the units available selling to that single cohort.
He said the voracious owner-occupier appetite for new and existing stock was unequivocally driving the Bayside market.
“Owner-occupier sales have been picking up over the last couple of years, with the obvious driver low interest rates and more recently Victoria’s strong population growth, but what we are seeing now is, in part, a sense of urgency to buy ahead of what some regard as an inevitable rise in interest rates, and an increasing trend to SMSF investment,” Mr Jackson said.
According to Savills Associate Director Research, Monica Mondkar, sales in Melbourne's South East, totalled $657 million in the 12 months to March, 27 percent up on the five year average ($517 million). Funds were the most active purchasing 52 percent of the stock reported sold while owner-occupiers recorded the highest number of transactions.
“Funds were the most active in the investment market right across Melbourne, purchasing 43 percent of stock while, again, owner-occupiers recorded the most transactions (28) across the key south-east, northern and western markets combined,” Ms Mondkar said.
Mr Jackson said the opening of the new $156 million Dingley Bypass last March had also been an important driver in the success of the sales and leasing of development projects in the Bayside market.
The 6.4 kilometre, six lane road linking Warrigal Road at Moorabbin and Westall Road at Dingley Village, was built with the promise of reduced traffic delays and congestion as we;; as improved traffic flow with more direct road connections.
He said purchasers had also been drawn to the depreciation benefits and stamp duty savings, on-title car parking, container access and NBN connectivity.
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