Banksmeadow, a suburb located nearby Sydney International Airport, has seen strong commercial interest in 2021.
The Announcement:
Banksmeadow is a fast moving commercial property market, with recent sale prices and leasing rates rising 20 per cent growth in prices over the last six months.
After a very quiet 2020 amid the previous COVID lockdown, the Banksmeadow market has taken off following the opening of the WestConnex, providing the market with improved connectivity to the city, Sydney Airport and the western suburbs.
The newly launched commercial agency X Commercial has achieved strong price and rental growth at industrial estates for both for Leda Holdings and Enterprise Industrial Estate with four units sold for three investors and one owner-occupier at up to $8,156 a square metre over the last month.
Industrial strata prices have jumped from an average of $6,000 a square metre to an average of $7,500 a square metre, while leasing rates have grown from as low as $200 a square metre to up to $300 a square metre, with yields above 4 per cent.
Charlie McKenzie, Associate director of X Commercial, said “There is a real push underway from investors to get into the Banksmeadow market, many taking on the risk of vacant possession sites off the back of strong leasing demand.
“The WestConnex has been a game changer in the area as both investors and owner-occupiers have noticed the dramatic travel time savings caused by the infrastructure to the port and around the city”, he added.
He cited one industrial estate where sales and leasing activity had been idle for much of last year, but in the last two months more than 50 per cent of its 21 had been sold or leased.
Banksmeadow has long been a base for many large companies like Kellogg, Toll, Orica and ANI Containers, but now had become attractive for small industrial companies, particularly those reliant on efficient distribution channels.
“The WestConnex has alleviated the traditional heavy travel traffic congestion in the mostly industrial area and we could see residential developments expanding to the area from neighbouring Botany in the future”, he added.
The newly formed X Commercial, a consortium of four major commercial real estate businesses, has started strongly to become one of the largest commercial real estate sales and leasing groups in Sydney. The new group has assets under management worth $1.5 billion, with 1,500 commercial, industrial and retail properties under management.
Source: X Commercial City PR
