- Walker Corporation developed the master planned estate.
- Aliro Group is set to subdivide the site into a multiblock development.
- The sale was one of the largest land sales in Brisbane's western corridor this year.
A 21 hectare parcel in Bundamba has been sold by the Walker Corporation and purchased by Aliro Group; Walker Corporation developed the master planned estate, and Aliro Group is set to subdivide the site into a multiblock development.
The deal was struck almost 12 months ago, and has recently settled upon completion of the fully serviced 21 hectare parcel.
One of the largest industrial land sales in Brisbane’s western corridor this year, the property is located at 88 Hume Drive. Situated half an hour southwest of Brisbane, the 350-hectare estate is home to major companies including Costco, SAAB Australia, TAE Aerospace, The Reject Shop, World Gym and Caltex’s Bundamba Travel Centre.
“With a combination of factors including an ongoing mandate from business to improve supply chains, the extreme shortage of land supply in the greater Brisbane area, along with high costs to build new industrial land subdivisions, it is expected that land rates well in excess of $500 per square metre are now the new benchmark for serviced industrial lots of one hectare-plus, still being very competitive against the more costly Sydney and Melbourne land markets,” said Walker development manager, Todd Martindale.
Brisbane land values
“Citiswich continues to evolve as one of South East Queensland’s premium master planned estates that caters for a wide mix of corporate business and industry uses,” added Martindale.
“Walker’s have been in this estate for the long haul, and are now seeing some great rewards for an ongoing commitment in delivering this large-scale, master planned estate that sits in a superb strategic location, at the junction of three of the major highway routes, being the Ipswich Motorway, Warrego, and Cunningham Highways,” said Knight Frank’s Mark Clifford, who negotiated the deal.
According to the Knight Frank‘s Australian Industrial Review Q1 2023, take-up within the Brisbane market was the highest across the eastern seaboard, at 261,565 square metres (sqm), with Melbourne take-up at 203,190 sqm, and Sydney at 50,898 sqm.
Furthermore, take-up was highest in the South West of Brisbane, with 46% of the quarterly activity; the Hume Drive property is in the South West precinct.
Tenancies from transport, postal, and warehousing remained the most active in Brisbane, comprising 30% of take-up over the rolling 12 months, followed by manufacturers at 25%, and 15% for retailers.
Rents continued to rise, with the heightened cost of construction being the prime driver.
Average prime face rents increased by 24.2% year on year, and up 8.6% in the past quarter. Secondary market rents increased by 31.7% year on year, and 7.7% for the quarter.