Busi­ness in­ter­ested in Pil­bara prop­erty

Pilbara News - - Pilbara News - Claire Tyrrell

The Pil­bara, one of Aus­tralia’s most de­flated prop­erty markets, is show­ing signs of life as busi­nesses ex­pand into its in­dus­trial es­tates.

The resur­gence in busi­ness con­fi­dence comes as LandCorp records an up­swing of in­dus­trial sales in the re­gion.

Port Hed­land’s Hed­land Junc­tion Es­tate and the Light In­dus­trial Es­tate in New­man have at­tracted in­ter­est from multi­na­tional and na­tional com­pa­nies in re­cent months.

In the past year, LandCorp has sold 10 lots in the Pil­bara to com­mer­cial en­ter­prises for a to­tal of $17 mil­lion.

LandCorp re­gional man­ager East Pil­bara Brad Pawlenko said com­pa­nies were pre­par­ing them­selves for the next surge in re­source ac­tiv­ity in the re­gion.

“We have had a lot of in­ter­est from multi­na­tional com­pa­nies — it is a good time to buy be­cause of prop­erty prices and a good time to build be­cause of lower build costs,” he said.

Buy­ers in Port Hed­land, in­clud­ing Bridge­stone Earth­mover Tyres, were “in it for the long haul”, ac­cord­ing to Mr Pawlenko.

Mr Pawlenko said sales in the es­tate had in­creased steadily in re­cent months.

“It is pick­ing up much more than this time last year — we are feel­ing a lot more pos­i­tive dis­cus­sion around the busi­ness sec­tor and maybe it is be­cause peo­ple here are po­si­tion­ing them­selves for the next cus­tomers,” he said.

“The last few years have been tough for busi­ness, but from my point of view it seems to have hit the bot­tom in terms of the in­dus­trial side — res­i­den­tial has a way to go, though.”

Busi­nesses have bought three lots in LandCorp’s New­man Light In­dus­trial Es­tate and there has been an of­fer on a fourth lot in the past week.

Lot prices in Pil­bara in­dus­trial es­tates have dropped by about 35 per cent since 2012, when they sold for up to $2.7 mil­lion.

LandCorp act­ing chief ex­ec­u­tive Dean Mud­ford said the surge in ac­tiv­ity would re­sult in a “sig­nif­i­cant boost to the econ­omy” and gen­er­ate about 100 jobs.

LandCorp’s re­cent launch of the Gap Ridge Light In­dus­trial Area in Kar­ratha is also ex­pected to at­tract cus­tomers.

Mr Mud­ford said the State Gov­ern­ment agency would con­tinue to de­velop in­dus­trial land in re­gional WA.

Pic­ture: Heather McNeill

LandCorp rep­re­sen­ta­tive Brad Pawlenko.

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