Luke Smith Co-principal of Raine & Horne Commercial Inner West/South Sydney says investors would do well to make a distinction between the Inner West’s housing market and its commercial property opportunities.
“The Inner West commercial market is robust due to its proximity to the Sydney CBD and is still relatively affordable compared to other inner ring commercial markets in Sydney,” said Luke. “At the same time, investors and buyers must set any commentary about the region’s residential markets to one side. Commercial markets in southern Sydney and the Inner West are humming along well.”
Industrial assets valued between $1 million -$10 million are in hot demand with buyers, while Luke noted there is a limited supply of properties in this price range in the Inner West and South Sydney. The sale of 256 square metre office and warehouse at 7 Fred Street, Lilyfield that sold under the hammer for $1.785 million in early July demonstrated the level of demand for industrial assets. “We had six buyers come to auction and bid who missed out on this property,” said Luke. “Industrial buyers are a combination of owner-occupiers seeking new facilities and investors.”
Meanwhile, industrial market activity is hotting up too in Sydney’s south west. Beldene Holdings P/L sold a 2,870 square metre site at 20 York Road Ingleburn for $2.3 million to a private investor, according to a recent Sydney Morning Herald report. The freehold complex of six industrial units was sold on behalf of the vendor by Daniel Krobot, Principal of Raine & Horne Commercial Macarthur.
The property is located within the well-established Ingleburn industrial area, providing excellent access to the M5 and M7 Motorways via the Brooks road on-ramp. Within walking distance to Ingleburn railway station and all the essential services available from the Ingleburn CBD.