Owner occupiers, investors driving market
TOWNSVILLE’S industrial market continues the positive trajectory witnessed over the past three years with a lion’s share of volume being in the sub-$1m price bracket underpinned by owner-occupiers and small-scale investors, according to Herron Todd White.
In its July review, Townsville director Jason Searston says with the increased activity in the mining sector, they anticipate continued growth in the support services industry as well as ongoing potential in engineering and manufacturing.
He says established areas such as Shaw, Bohle and Mount St John are seeing continued focus although recent large-scale land development in the Townsville State Development Area at Stuart/cluden reveals strong local and national commitment towards the road transport, logistics and warehousing service sectors.
“This has triggered both options of build to occupy and build to rent subject to a long-term lease,” Mr Searston said.
“While showing signs of promise, these commitments are not without risk and certainly the continued uplift in construction costs questions the ultimate viability of such capital investments on paper.
“It is likely that the escalation in construction costs, supply chain issues and potential for extended delivery horizons may delay or inhibit new construction over the short term.”
Mr Searston says recent construction would indicate a lean towards lighter scale, mid-clearance, cold form construction of warehouses which supports the small to medium scale end of the market. He says larger scale, high clearance, engineered portal frame and clear span buildings are built for purpose and typically under design and construct scenarios. “On balance, Townsville is well placed for future on-shoring prospects with the ability to introduce manufacturing locally,” Mr Searston said. “The potential to supply to local onshore markets is a positive which opens up the glaring possibility of export to overseas markets. In any case the industrial sector as an overarching segment will continue its growth phase, all things being equal.”