A vacant block of industrial land in Perth’s east has sold in an off-market deal amid ongoing strong demand for infill industrial sites.

The 48,473sq m site at 26 Central Avenue in Hazelmere was purchased by a private developer from Metallica Property Development Pty Ltd for $20.6 million plus GST in a deal negotiated by Tom Iredell of Knight Frank.

The buyer intends to take advantage of the site’s prime locational characteristics and surrounding transportation routes and develop into a prime warehousing and logistics facility. 

Mr Iredell said industrial infill sites of scale were increasingly rare in the current market, but demand remained strong, particularly for well-located opportunities, hence the strong sales result for the Hazelmere property.

“The sale rate of $425 per square metre is significant based on the size of the property demonstrating the demand for development sites of scale in Perth with capacity to house major tenants,” he said.

“Rising rental rates on the back of tenant demand consistently outperforming supply is helping to hold industrial values for development stock.”

Knight Frank’s latest Australian Industrial Review found there had been renewed demand for industrial land in Hazelmere this year, with increases to land values, particularly for larger allotments.

Mr Iredell said Hazelmere was sought after by industrial users due to its connectivity to Perth’s major transportation routes and proximity to key infrastructure such as the Perth Airport and CBD.  

“Hazelmere is also home to larger-scale industrial lots which are becoming increasingly rare in today’s market,” he said.

“The property at 26 Central Avenue is situated on the Main Roads heavy haulage network, providing RAV 7 access to Bushmead Road.”