BING MONTHLY – 2016 Q1 REVIEW
Bing Property Group has just celebrated the milestone of our first twelve months of operation, and we would like to sincerely thank you all for the support we have received. We are eternally grateful for the faith shown in us, and we hope we have honoured that trust through our service and results. It has been an exciting journey thus far, and our transactional results are outlined below in this newsletter to highlight our growing list of achievements.
As we reach the end of the first quarter of 2016, we are very pleased by the activity being witnessed across Melbourne’s industrial market. It is the first time in recent memory that we can recall all the market sub-sectors firing concurrently. We are witnessing strong demand in land sale enquiry, owner-occupier sales, leasing, and the investment market at present. We do however preface that the leasing market activity continues to be under-pinned by substantial incentives, particularly in Melbourne’s west, and this is contributing to demand in this sector.
So what do we anticipate for the next quarter and beyond?
It is clear that some sectors of the market are likely to become constrained, particularly serviced land supply and leased investment stock. We are therefore bullish on land values, and yields will continue to hold at historically sharp levels so long as interest rates remain low and liquidity and LVR requirements from the banks remain stable. The leasing market is also being buoyed by growing demand from the 3PL sector, which should result in greater activity for buildings in excess of 10,000 m2.
We look forward to keeping you updated with activity from Melbourne’s industrial marketplace over the coming months.