Business interested in Pilbara property
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.
LandCorp representative Brad Pawlenko.