Dandenong king of commercial property searches
Industrial property has emerged as the “golden child” of the commercial market, with industrial-heavy suburbs topping a list of the most in-demand suburbs for private investors, owner-occupiers and tenants.
Dandenong, 29km southeast of Melbourne’s CBD, was the most sought-after suburb for commercial property over the three months to September 5, based on searches on realcommercial.com.au for properties for sale and lease.
The second-most popular was Campbellfield, 16km north of the CBD, while other suburbs from outer Melbourne included Epping in fifth place, Thomastown in eighth and Pakenham in 10th spot.
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Victorian suburbs dominated the ranking.
Wangara in Western Australia and Burleigh Heads in Queensland were the only exceptions among the top 10.
The list was skewed to suburbs with dense industrial property options, according to REA Group executive general manager of commercial and developer Joseph Lyons.
The arrival of Amazon is having a dramatic impact on Dandenong property.
“When we look at our site we’re seeing that industrial property really is now the golden child of the commercial market and it’s continuing to perform really well,” he says. “These (industrial) properties do offer really strong yields and returns for investors particularly.”
Lyons has noticed both Australian online retailers and larger international retailers setting up in Australia looking for warehouse space.
The looming arrival of Amazon is also encouraging traditional retailers to get their supply chains in order, he says.
Amazon has homed in on a former Bunnings site in Dandenong, owned by private developer Pellicano Property, for its first major distribution centre in Australia.
Inner suburb Richmond in Melbourne came in at fourth place in the ranking, after a wave of tech companies moving into the area including Seek, MYOB and REA Group.
This article originally appeared on www.theaustralian.com.au/property.
