However, industrial remains the golden child of the commercial property sector. Limited supply and constrained land saw returns for built form remain elevated. Secondary industrial actually outperformed prime this period with positive capital growth, up 4.6 per cent for a total gain of 8.6 per cent - the most outstanding result of all asset types and locations across the country. Results trended well ahead of the prime market with total returns of just 0.3 per cent. Quality results in warehousing, industrial estates spurred on appreciation in these total returns.
Western Australia led this charge with 6.5 per cent total return (albeit just 0.1 per cent representing capital growth). Total returns for New South Wales hit 2.9 per cent with a small 0.1 per cent capital decline. However looking more locally, Sydney’s Central West has shown outstanding results, recording capital improvements of one per cent this period to grow total returns to 4.9 per cent. Despite Sydney’s Outer West and South still seeing capital declines, total returns remained positive, both at 2.7 per cent. Highlighting pockets of positivity still can be found across the broader commercial property market.
