Booming South West Sydney market boosted by new industrial site listing

A sizeable industrial freehold site in the booming South West Sydney market is set to go under the hammer, providing much needed supply to a region lacking quality stock.

The 4,082sqm site at 166 Eldridge Road in Condell Park is situated in a market that has been devoid of industrial listings, with institutional capital spending over $500 million last year on western Sydney industrial property, much of which is set to be developed into multi-level warehousing.

With a building area of 1,799sqm and a low site coverage of just 44 per cent, the vacant property is zoned IN1 General Industrial and comes with 34 metre frontage to Eldridge Road.

The Colliers team of Angus Urquhart, Adrian Balderston and Hamish Miles have the listing, with the property to go up for auction on Wednesday the 23rd of March, 2022 at 10.30am.

“We have never seen the South West industrial market starved of industrial availability like this before from both a sale and leasing perspective,” Mr Urquhart said.

“There has been a big push from owner-occupiers and tenants from South Sydney looking to migrate down the M5 in search of better valued industrial property, and they are often outbidding traditional buyers from the region.”

The property comes with several attractive features including a high-power supply, a five-tonne gantry crane, 10.5m internal warehouse clearance and between eight and 10 parking spaces.
As a result of new investment into suburbs like Kingsgrove, Riverwood, Milperra, Revesby and Punchbowl, the available developable land has shrunk dramatically and land prices have increased significantly, with this trend forecasted to continue into the near distant future.

“Record land rates are being achieved on a regular basis thanks to a major land shortage. Growing pressure from core South Sydney tenants relocating towards South West markets is increasing rental rates, lowering incentives and impacting current supply,” Mr Balderston added.

Surrounding development in the Condell Park area comprises a mixture of newly developed strata estates, owner occupied warehouses and is tightly held with few freestanding warehouses rarely sold.

Situated in a fantastic location offering access to major arterial roads such as Milperra Road and the M5 Motorway, the property is just a 14-minute drive to Port Botany and a 16-minute drive to Sydney Airport.

Recent Sales Evidence from RESourceData

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