Investors are circling around $100 million industrial land in western Sydney

“Capital expenditures reached $7.9 billion for the year, which is the second-highest annual volume on record,” Bishop said.

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“For 2023, asset pricing will remain the key issue. However, with rents rising six times the long-term average, the sector is well positioned to weather the uncertainty.”

He added that once interest rates and funding costs stabilized, capital sitting on the sidelines would flow back into the sector and another strong year was expected.

Vacancy rates also fell over the year, averaging 0.6 percent nationwide, while occupancy figures set a new record at over 4.85 million square meters. Prime rents rose 21.6 percent on average nationwide – more than six times the 10-year average of 3.5 percent.

Southwest Sydney is experiencing unprecedented growth, with a population expected to exceed 1.5 million by 2036.

In addition, local, state and national governments in the region are expected to spend approximately $3.6 billion, including on the future Western Sydney Airport and surrounding Aerotropolis.

“Both the Austral and Leppington North boroughs are highly desirable due to the recent rezoning by the NSW Government which will allow for urban development,” added Sacco and Oliveri.

The rededication will provide enough land for approximately 17,350 homes potentially housing more than 54,000 residents.

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