Albury Commercial Market Update 1st Half of 2023
The Albury commercial market report focuses commercial & industrial properties and analysing their sales and leasing activity over the past 18 months, with data up to an including April 2023. This report also analyses recent and future development in the area. Combined, this provides a holistic understanding of the commercial and industrial property markets in Albury LGA.
SALES OVERVIEW
The median sale price pr sqm for commercial property in Albury* was $3,563 in 2H 2022, based on 5 sales. This is a half-yearly (Q2 2022 – Q4 2022) price growth of 31.3% and annual (Q4 2021 – Q4 2022) price growth of 141.2%; showcasing a strong market.
Market activity has fluctuated since 2H 2019, which saw a peak of 37 sales. Transaction volume has remained relatively low for the past 18 months, however median sale price per sqm have increased. This suggests there is a market undersupply in this sector.
Similar to the commercial market, there was very little activity in the industrial sector.There were 4 recorded sales in 2H 2022 with a median price per sqm of $1,643. This represents half-yearly (1H 2022 – 2H 2022) price growth of 40.8% and an annual (2H 2021 – 2H 2022) price growth of 87.7%.
Industrial sales volumes have softened in the past 12-month period (2H 2021 – 2H 2022), while price per sqm has increased.
LEASE BREAKDOWN LEASING
Leases commencing in the Q1 2023 were taken on a Gross basis, as opposed to Nett basis. A majority, representing 98% of commercial leases, were taken on a Gross basis (based on 182 known leases). This is a continuing trend, evident in the past 24 months. The dominant lease type in Albury’s* industrial market proved similar to the commercial market, with 85% of leases being adhered to on a Gross basis (based on 41 known leases). The average days to let a commercial space has declined in the 12 months to Q1 2023, by -57.2% (to 78 days). Similarly, the average days to let an industrial leasing space has declined by -51.0% (to 94 days). This reflects the imbalance between high demand and undersupply of stock.
PROJECT DEVELOPMENT OVERVIEW
A key project for the 1st half of 2023 is the $7.5M Albury Waste Management Centre Facility. This infrastructure project will see the construction of a material recycling facility, including an office building and warehouse. This will contribute to higher economic output (i.e local jobs) and being more environmentally friendly. There is a significant focus on commercial development in the 1st half of 2023. West Albury Clinic ($2.8M) is one, adding 670sqm of specialised commercial floor space. Others include Wodonga Place ($2.7M) and Diamond Drive Commercial Development ($30.0M).
There are several residential projects due to commence in the 1st half of 2023, which will add 5 townhouses, 24 units/apartments, and 235 lots. A major residential project in the 1st half of 2023 is the Oak Estate ($8.9M). This project is set to reconfigure a lot into 198 Lots, including associated road and native vegetation works. 6 industrial projects are planned for the 1st half 2023, including: 28 Arc Circuit Warehouse ($5.0M) and 111 Kaitlers Road Electrical Warehouse Showroom ($3.8M). These will assist in addressing the current undersupply, especially from a leasing perspective. That said should demand continue in its current trajectory competition for industrial will remain tight, putting a pressure on prices.
