WELSHPOOL, KEWDALE & CANNING VALE
- Rents in major industrial areas have now stabilised
- Increase in transactions in November and December has carried forward into 2018
- Secondary grade buildings remain vacant due to the amount of stock still available
- Demand remains steady for A-grade 1,000 sqm - 2,000 sqm buildings
- Enquiry levels have increased since January 2018
- Incentives to quality tenants are still prevalent
- Stock levels remain high, however transactions are increasing
- Sentiment amongst buyers and tenants that the market has ‘bottomed out’
After a difficult 2016-2017 financial year, the start of the 2017-2018 financial year saw a notable rise in enquiry levels and transactions towards the end of the year. This enquiry has continued into 2018 leading to a positive outlook for the year ahead. Prime warehouse rents have stabilised at $90-$100/sqm and $70-$90/sqm for secondary buildings.
While stock levels and vacancy rates remain high, the outlook for 2018 remains positive with many consumers and businesses' confident in the current economic conditions. Throughout 2018 we expect a decline in vacancy rates and a higher volume of sales & leasing transactions on the back of an optimistic economic outlook in Western Australia. Although economic conditions are brightening, we do not expect to see a significant change in prices (both leasing and sales) for some time.