RESILIENCE IN THE MOST UNCERTAIN OF TIMES
Given the recent nationwide outbreaks and lockdowns, one could be forgiven for wondering when this is all going to end and is there light at the end of the tunnel. Sporadic lockdowns across various states have crippled the ability for certain industries to plan ahead with any confidence, specifically those in the hospitality and tourism sectors. Fortunately one such sector of the economy which hasn’t been drastically affected is the industrial property market. The Perth industrial scene has had a strong end to the financial year with a number of successful transactions taking place from both sales and leasing.
Although WA has had its share of COVID scares which has dampened interest and activity, particularly over the Easter period, the strong transport, logistics and mining sectors have driven the market to the best conditions we have seen for the past 6 years. Properties with quality hardstand, gantry cranes and or modern construction continue to be the most sought after stock. Older properties and those with large office components continue to experience longer than normal time on the market. We have seen a general decline in the requirement for larger office areas, primarily due to the emergence and success of working from home policies over the past 12 months.
So as the financial year draws to a close, MLV have a cautiously optimistic outlook for the remainder of 2021 and beyond. We foresee the demand for modern properties to remain strong, driven by interest from owner occupiers or tenants seeking to secure longer term leases in quality accommodation as choice becomes limited. We expect to see capital values and rents recover over the next 18 months as demand outstrips supply. MLV remain ready to assist our clients into the future for any industrial property needs.