2022 has had a slow start to industrial transactions across the country, however WA is still performing well. 

That’s according to the Between The Lines: Perth Industrial Vacancy & Market Overview June 2022 recently released by Ray White Commercial (WA).

The slow start is attributable to the likelihood of consecutive interest rate rises and the uncertainty surrounding government prior to the Federal Election, which caused some buyers and sellers to stall on property decisions. However, the ongoing strength of the industrial market is likely to continue and yields will remain low despite a slowdown in sales volumes. 

Over the last 12 months, the Perth Industrial market has seen a dramatic reduction in vacancies across all precincts and size ranges, as new supply projects slow to get off the ground. Continued high take up will ensure vacancy remains tight with rental appreciation continue to be likely across all regions of Perth.

Although felt across all precincts and size ranges, improvement in the vacant listing numbers has been particularly notable at the smaller end of the market which has seen suburbs such as Malaga, Osborne Park and Canning Vale improve dramatically given their historic high volumes of smaller industrial unit stock available in these precincts. South has continued to show the greatest reduction over a 12-month period.

There has been some moderation in industrial sales transactions early this year, with $1.957 billion changing hands during the year across 972 transactions, which represents a volume change of 136.21% on the prior year. Assets in the sub $2 million price range remain the most attractive investment choice.

Find the full report here: Between The Lines : Perth Industrial Vacancy & Market Overview June 2022.

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