An undersupply of developed industrial land is pushing prices up in one south-east Queensland suburb, according to Knight Frank.

An audit conducted by the agency for Brendale in the Moreton Bay region found just 22 lots were left available across only four estates - Newbase Enterprise Park, Brendale Connect, 118 Kremzow Road and Johnstone Road.

It comes after more than $50 million in sales across these four estates, as well as 133 South Pine Road, which is now totally sold out.

Knight Frank Strathpine Industrial Manager Mark Horgan said inquiry and take up for land in Brisbane’s Greater North industrial precinct had remained robust over the past quarter, with a strong commitment to emerging and completed industrial land subdivisions. 

“Both owner-occupiers and developers have realised that if they wish to grow and stay within this precinct – and in particular Brendale - they must commit now and secure a position," he said.

“Pricing for land has remained stable over this past quarter, however, we anticipate this to increase due to the undersupply of readily developed allotments. 

Knight Frank Industrial Sales and Leasing Executive Dave McPhillips. Source: Knight Frank

“Future commitment and requirements will need to head further north to the Narangba/Burpengary precincts purely due to the lack of availability.” 

Land prices currently range between $280 and $330/sq m, depending on size, location and zoning, but Knight Frank believes strong buyer demand could push prices up as much as 10 per cent. 

Industrial Sales and Leasing Executive Dave McPhillips said the strong take up of land, particularly in Brendale, had been driven by the depletion of both quality and secondary stock levels in Brisbane and tenants seeking greater efficiencies in their building’s performance. 

“Developers have identified an opportunity to purchase land to build high-quality facilities for industrial tenants, particularly those in logistics, due to the rise in e-commerce," he said. 

“Brendale is an ideal location for these businesses – it’s a very large and one of the most significant industrial hubs in Brisbane, situated 17 kilometres from the CBD and close to the Bruce Highway and Gateway Motorway, providing easy access elsewhere."

Similar to this: 

Strong demand for scarce industrial land in Brisbane’s south

Confidence returns to Perth’s industrial market: Ray White

Bibra Lake industrial warehouse sold for over $1.1M