The State of Victoria has continued its favourable economic conditions of 2015 into 2016 due to consistent increases in GSP which has stimulated both employment and population growth.
This positive growth position of the State has also been aided by the continued lowering of interest rates and favourable exchange rates which has encouraged investment both domestically and off shore into the state. Despite changes in FIRB approval fees and financing regulations for foreign buyers, demand by these buyer types have maintained as the broader fundamentals of investing in Australian property remains attractive. Competition to purchase (and lease) has been beneficial for the industrial market resulting in some improvement in values, (stable rentals) and competitive yields. More locally in the Kingston LGA, demand levels during 2016 have been stable particularly in the sub $1million price range. This lower price point highlights the attractiveness of this market for both owner occupiers and also local private investors looking to diversity.