PRDnationwide Norwest

Level 4, Suite 402, 10 Century Circuit, Norwest, NSW, 2153

02 9680 3300

Norwest Property Market Update 2nd Half of 2019

The median sale price for commercial property in Norwest was $7,122 per sqm as of Q2 2019. This represents a half-yearly (Q4 2018 – Q2 2019) price softening of -7.5%. The variations in median price per sqm are attributed to the various commercial offerings transacted in Norwest across the period, as well as limited transaction volumes (with a total of 18 commercial sales occurring in Q2 2019).

In contrast, the median price per sqm for industrial properties reflected a more stable trend, at $4,225 per sqm during Q2 2019. This represents a half-yearly price softening of -1.2%. Sales of industrial properties have increased by +80.0% between Q4 2018 - Q2 2019, whilst commercial sales increased +50.0% over the same period. Despite relatively low sales volumes in both markets, there is evidently a growing preference for industrial property stock in Norwest.

Leasing activity in the commercial sector in Norwest increased over the six months to Q2 2019, by +42.9%. At the same time, the industrial market in Norwest slowed, with total leasing activity across softening by a similar -38.9% across this period. A median price of $350 per sqm was recorded for commercial leases in Norwest across Q2 2019, whilst industrial properties recorded a median price of $180 per sqm over the same period.

Norwest is set to benefit from an estimated $2.6B of development, scheduled to commence between 2017-2019. There are 106 major projects due to commence, which represents 59.9% of the original development pipeline, with approximately $1.7B (or 40.1%) either deferred or abandoned by developers.