Industrial property is one of the most hotly contested sectors in today’s property market. With pandemic conditions supercharging what was already a stable, in-demand sector, agent research has shown that the last financial year was the best on record generating an incredible total return of over 23% in the year to June 2021.
These favourable returns, in what is ironically unfavourable conditions, are appearing to continue on an upward trajectory as we all settle in to our ‘new norm’ and become increasingly reliant on products that require more warehousing, storage and transport. As such, the industrial sector continues to attract investors and draw in high prices and low yields due to its strength throughout adverse global economic conditions.
Kembla Grange is no exception and is located in the Illawarra region, which is a part of NSW’s most upcoming buoyant industrial areas of Wollongong. It has experienced a steady increase in median property prices over a five-year period with a 58.96% capital gain¹, this expecting to continue due to its positive economic conditions as well as the relative affordability and availability of land compared to Sydney.
Other advantages of this strategic location is its proximity to the Port Kembla expansion (NSW’s second container terminal) as well as to the growth area of South West Sydney and the future Aerotropolis. This new international Airport will connect to Greater Parramatta and the Harbour CBD and is predicted to generate approximately 100,000 new jobs by 2056, this being the biggest employment boom in NSW’s history.²
A prime opportunity to be part of this growth in Kembla Grange is now on offer with LJ Hooker Directors Ryan Jennings and Jon Orsborn, representing the vendors on the sale of a 18.77ha freehold site in Whyllie place, directly opposite the Kembla Railway Station. “This site is positioned for future land growth not only because of its location but also because of it’s flexible zoning of IN2-Light Industrial.” stated Mr. Orsborn “It will also deliver exponential capital growth because of the increase in population and infrastructure that is imminent, compared to industrial land in metropolitan Sydney at the moment where there are often land constraints, low supply and high land values."
The Kembla Grange site is a regular shaped property with near level terrain and access via Wyllie Place from West Dapto Road. It has easy access to major arterial roads such as Princes Highway and F6 Freeway and is located approximately 6km from Port Kembla, 8km form Wollongong CBD, 80km to Sydney Airport and 90km to Sydney CBD.
It has already been subject to two prior development application approvals, one for a 38 Community Title, Industrial Lot Subdivision (2006) which is understood to have commenced in addition to an earlier approval for 5 lot subdivision. The site is elevated approximately 25m above road level which provides it with exposure to passing traffic along the Princes Highway, further enhancing the appeal of this expansive offering.
“This is an excellent opportunity for a developer, owner occupier or investor to purchase a significant greenfield land holding in the Illawarra area and we expect to attract a range of interest from both local and overseas investors.” concluded Mr Orsborn.
Whyllie place, Kembla Grange will be sold via an Expressions of Interest campaign closing Thursday 19th May 2022 at 4:00pm. Price is circa $25 million.
¹https://www.smartpropertyinvestment.com.au/data/nsw/2526/kembla-grange
