Scarcity of future supply, with land availability, drives competition in Laverton North.

Colliers Industrial announce the successful sale of a 5.3-hectare industrial site in Melbourne's West for $32 million. This prime last-mile industrial development opportunity, located at 8-14 & 16-18 Hume Road, Laverton North, was managed by Colliers agents Nick Saunders and Hugh Gilbert on behalf of Nufarm.

Situated approximately 17 kilometres west of Melbourne's CBD, this infill site offers purchasers a shovel-ready development opportunity with flexible options, dual street frontages, and short-term holding income. The highly competitive expressions of interest campaign generated over 80 enquiries and eight bids, culminating in a local private developer outbidding national institutions to secure the property.

"The near fully developed infill precinct is tightly held, with development opportunities of this nature rarely offered to the market. Its proximity to the major freeway interchange between the Western Ring Road, West Gate Freeway, and Princes Freeway further enhances its appeal," said Nick Saunders, National Director at Colliers.

As one of the last remaining infill development sites offering scale, the property's key selling points included its short-term holding income, dual street frontages, and superior freeway access. The site is nestled in one of Australia's premier industrial locations, surrounded by major companies such as Lineage, Bunnings (ASX), Holcim (ASX), and Infrabuild.

Laverton North, a tightly held industrial area, boasts a vacancy rate of approximately 0.43%.

“Melbourne's inner West industrial market continues to prove its status as one of Melbourne's most sought-after and tightly held core industrial markets," added Saunders.

Hugh Gilbert, National Director at Colliers Industrial, noted, "Melbourne's western industrial precincts enjoy consistent demand from occupiers seeking to remain close to the Port of Melbourne and key residential catchment areas with favourable employment demographics. A key distinguishing feature of the West market is the lack of future supply, with land availability diminishing rapidly over the past two years due to record levels of take-up."

The Melbourne West industrial market has gone from strength to strength in recent years, establishing itself as the country's most active market.