It was recently reported that Sydney saw the biggest drop in home values. According to the Domain House Price Report, home values in Sydney sank by 3.1 percent, the biggest drop in 2015 that's ever seen by a market once thought red hot and stable. But the Sydney market is not giving up without a fight and while it doesn't look like the residential real estate sector will be seeing price growths, the industrial sector in the south Sydney area is picking up the slack in the market.
According to the Sydney Morning Herald, Jones Lang LaSalle (JLL) is convinced that South Sydney's industrial market will see 2016 as another strong year, just like last year, as demand for properties has been predicted to remain strong throughout the year. The latest to hit the market is the 26,359-square-meter site located at 3 Anderson Street, Banksmeadow.
The prices has not yet been revealed but similar properties have sold at around $20 million. The selling of the Banksmeadow site is currently being handled by JLL's head of South Sydney, Blair Peterken and NSW head of industrial, Michael Wall.
Last year, on behalf of Orica to, JLL had sold a different Banksmeadow site in 2-28 McPherson Street Goodman for $33.1 million. Mr. Wall said that the site at 3 Anderson Street is one of the select significant sized assets in South Sydney. He adds that, "The recent rezoning of South Sydney has resulted in unprecedented demand from industrial users to stay in close proximity to Port Botany and Sydney's airport. As occupiers subsequently compete to secure properties within this precinct, we have witnessed industrial prime net face rents increase to an average of $161 per square meter per annum over the past 12 months."
If this trend in the industrial property sector of South Sydney would continue, the city can hope that it would have a domino effect to housing.
