Backing the Peel Regional Campaign pays off for the Southern Corridor

Pinjarra Industrial Estate Pinjarra Industrial Estate
The West Australian economy has been the strongest performer nationally throughout the COVID-19 pandemic, with the industrial sector seeing untapped enquiry for commercial assets in the Peel Region emerging stronger than pre-pandemic conditions thanks to “The Regional Land Booster” campaign with great incentives and record low interest rates.

The Pinjarra Industrial Estate by Development WA is helping meet the demands of small businesses, suppliers and contractors for land in the mining, mineral processing, manufacturing and construction industries which are key drivers in the local economy. Enquiry levels from owner occupiers and investors are surging, with levels not seen in over 5 years according to Realmark Commercial’s Executive Director, Mike Rowe.

“In Pinjarra, we sold 9 lots in 6 months. We are seeing a surge in enquiry trending in Perth’s Southern Corridor that hasn’t been witnessed since pre COVID-19. This is due to a combination of factors such as DevelopmentWA’s phenomenally successful campaign, low interest rates and finance being more accessible. Owner occupiers and investors are now opting to purchase rather than lease commercial property.” Mr Rowe said.

The mining and resources sector's resilience in Western Australia during the pandemic as well as growth in new uses such as e-commerce has contributed to the surge in demand for industrial property.

Realmark Commercial’s Industrial Sales & Leasing Director, Wayne Chorley, has observed “Demand for well leased industrial assets continue to run unabated, this competition is leading to yield compression with prime yields currently at 6% in WA”.

“In previous years, we were selling 1 lot in 10 months in the Southern Corridor, with areas such as Welshpool in higher demand. Now we have sold 10 lots in 6 weeks to major engineering groups, earth moving companies, building and construction companies and companies who require extra storage facilities for goods being shipped in larger quantities due to the pandemic.” Mr Chorley said.

The building and construction industry resurgence has seen materials become in short supply with companies scrambling for adequate storage facilities. Pinjarra Industrial Estate is only minutes from the Perth-to-Bunbury Highway features 20ha of prime industrial land ideal for business owners with medium to large factory or workshop requirements, manufacturing, off site storage and is a perfect midpoint between Perth and Bunbury.

Development WA’s General Manager Industrial Lands Authority, Andrew Williams said land at Pinjarra Industrial Estate had seen significant demand.
”The Western Australian industrial property market is currently experiencing considerable demand off the back of the State Governments response to Covid, including job creating stimulus like the Regional Land Booster,” said Mr Williams.

“The Peel is one of the regions experiencing the most significant change in market demand. Our Pinjarra Industrial and Peel Business Park developments have seen available stock snapped up.”

“We are working to ensure we meet that demand through the delivery of high quality, well serviced and well-planned industrial land in the Peel and elsewhere, supporting job growth and opportunities for WA.”

With investors now scrambling to re-evaluate their portfolios, the industrial market is now seen as the preferred asset class for property investors.

Contact Wayne Chorley on 0423 252 253 or Mike Rowe on 0408 470 074.
Pinjarra Industrial Estate Pinjarra Industrial Estate

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