According to a recent report from BIS Shrapnel, Sydney will face an industrial land shortage within the next few years if the government does not take immediate action. In order to slow, if not prevent, the shortage, the servicing of additional land must be fast-tracked. Currently, industrial developers are quickly eating up Sydney’s land banks.
BIS Shrapnel’s report shows that take-up of serviced land now stands at 80 hectares a year, which is well above the annual rate of land being serviced. At the end of 2013, Sydney is forecast to have about 316 hectares of serviced industrial land available for construction. This dwindling supply could be exhausted within two to three years if servicing rates don’t pick up.
The shortage has been fuelled by a global surge in investor demand for industrial-grade property. At the moment, developers are struggling to keep up with demand, due to the lack of space available.
Although about 1,500 hectares of un-serviced land remains in metropolitan Sydney, it would take years to bring it up to speed.
Posted by Steve Douglas