They may be unglamorous warehouses on the outskirts of Melbourne, but private investors are returning to the Melbourne south-east industrial market, accounting for more than a third of all transactions over $2 million in 2012, according to Savills.
The pie chart below shows that private investors were the biggest buying group of industrial properties in south east Melbourne in 2012, accounting for 36% of all transactions.
According to Savills' Victorian head of research Glenn Lampard, investment yields for prime industrial property remained in a range of 7.5% to 8.75% while land values ranged from $115 to $200 a square metre for land between one and five hectares.
Lampard said private investors had been quicker out of the blocks to recognise an opportunity in the growing region.
The south-east Melbourne industrial market includes suburbs like Clayton, Moorabbin and Huntingdale.