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INDUSTRIAL YIELDS ON THE MOVE

Traditionally developers and investors looking to upgrade their portfolio have provided a regular supply of investments for sale in the South East market. However, 2017 saw a lack of motivation by vendors to sell compared to previous years, due to lack of attractive alternative opportunities in the market place.

Developers traditionally motivated to sell investments to fund land acquisitions are now slowing down due to the lack of land available to purchase. Investors looking to upgrade their portfolios are having to accept all time low yields, making it less attractive to trade their existing properties.

It is our view that whilst low interest rates remain, and the lack of stock continues, yields will be driven lower. In 2017 we saw industrial yields go from 7% to 6% and 2018 has seen Industrial yields compress to circa 5%.
 

Crabtrees transacted record low yield investments in 2017 and we would be more than happy to share our results and assist you with your requirements. You can contact the Crabtrees team on 9567 8888 or at crabtrees.com.au. 

By Chris McKenzie May, 2018