Investors circle $100m industrial development land in Sydney’s west

“Investment volumes reached $7.9 billion for the year, which is the second-highest annual volume on record,” Bishop said.

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“For 2023, asset pricing will remain the key theme. However, with rents growing at six times the long-term average, the sector is well placed to weather the uncertainty.”

He added that once interest rates and funding costs stabilised, the capital sitting on the sidelines would re-enter the sector, and that another strong year was anticipated.

Vacancy rates also fell throughout the year and average 0.6 per cent nationally, while leasing numbers exceeded 4.85 million square metre, which set a new record. Prime rents grew by 21.6 per cent on average nationally – over six times the 10-year annual average of 3.5 per cent.

South-west Sydney is experiencing unprecedented growth, with a population of more than 1.5 million expected by 2036.

On top of this, a forecast of about $3.6 billion is due to be spent by local, state and national authorities within the region, including on the future Western Sydney Airport and surrounding Aerotropolis.

“Both the Austral and Leppington North precincts have been highly sought-after due to recent rezoning by the NSW government, which will allow for urban development,” Sacco and Oliveri added.

The rezoning will provide enough land for about 17,350 dwellings that will potentially house more than 54,000 residents.

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