Marrickville, NSW (23 September 2021) – A rare 519 sqm parcel of industrial land in a prime position just off Marrickville Road in Sydney’s sought-after Inner West has sold for a record $2.68 million.
“The vacant block at 14 Gerald Street, Marrickville is close to Sydenham railway station and attracted over 130 enquiries. This level of interest resulted in 14 registrations for the hotly contested virtual auction,” said selling agent Luke Smith, Co-Principal of Raine & Horne Commercial Inner West/South Sydney.
“While a strong record price for a vacant block of $5,163 per square metre was expected the result was still surprising. The most recent land sales in the region were about $3,000 per square metre.
“That said, enquiry levels for industrial property throughout the Inner West and South Sydney are at the highest levels, we have seen in 15 years.
“This rare industrial land holding attracted strong enquiry, resulting in a sale well above reserve at a record rate per square metre.”
According to Mr Smith, a combination of low-interest rates and low supply levels have contributed to the strong results as many tenants weigh up the expense of leasing rather than owning their place of business.
“Our team is working with many motivated buyers and established tenants.”
The rare property also attracted the attention of savvy developers as it came with DA approval to construct a 490 sqm warehouse with first floor offices across three units.
Developers like the fact they had the option of constructing the approved development or exploring a choice of alternative development options to suit their needs, Mr Smith noted.
“The property is zoned IN1 General Industrial, is suitable for a wide range of uses and is currently utilised for storage of building materials. The property was offered with vacant possession and represented a great opportunity for builders, developers, owner-occupiers, or investors.”
Record growth must be tempered with land tax breaks
Mr Smith warned that the massive price growth presents a double-edged sword for new owners.
“While price growth of this magnitude is fantastic for vendors, the likelihood for new owners is that the Valuer-General will also increase land values, which will flow back to them in the guise of higher land tax imposts,” Mr Smith cautioned.
“It’s a double-edged sword for investors as they are already paying more upfront for the properties due to the price rises and then will face more considerable land tax liabilities.
“For this reason, it’s critical that the NSW Government must review land tax on commercial property assets because higher valuations will impact the cash flows of long-term mum and dad investors and potentially impact their ability to hold onto assets that are financing their retirements.”
For all your commercial property sales and leasing needs in Sydney’s Inner West and South Sydney, contact Raine & Horne Commercial Inner West and South Sydney on 02 9572 8855.
For more information on commercial property markets across Australia click onto this link for a copy of the Raine & Horne’s Commercial Insights Winter 2021
For further media information contact:
Luke Smith, Co-Principal, Raine & Horne Commercial Inner West/South Sydney on 0416 281 577
Olivia Rowe, Content & Communications Executive, Raine & Horne Group on 0432 113 569