Australia’s industrial property market may be nearing the bottom of its cycle as yields stabilise and investors return. New data from CBRE shows over $5 billion was invested in industrial assets during Q3 2024, well above last year’s total and suggesting early signs of recovery.
PropTrack economist Anne Flaherty said that industrial values have adjusted after two years of downturn, and investors may now see it as an opportune entry point. Industrial yields, which expanded post-pandemic, have recently stabilised. This prompted expectations of increased transaction volumes into 2025, especially with potential interest rate cuts on the horizon.
Nationally, rental growth remains strong, with super prime rents up 1.6% quarterly. However, supply challenges are still around, as vacancy rates remain low due to limited new warehouse space. This trend is expected to continue supporting rental growth.
