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Weak signs for industrial property in Melbourne

Brisbane Times
Weak signs for industrial property in Melbourne - Melbourne - Australia - property

UNDERLYING demand for industrial property in Melbourne is set to weaken over the next 12 months in line with the Victorian economy, according to the forecaster BIS Shrapnel.

In contrast, the outlook for Brisbane's industrial market is more positive, although demand remains narrowly focused, says BIS Shrapnel's latest report, Melbourne and Brisbane Industrial Property Market Forecasts and Strategies 2012 to 2022.

Despite the poorer forecast for Melbourne, speculative building is still going ahead, particularly in the industrial west, an analysis by Savills Australia has found.

BIS Shrapnel's senior project manager, Lee Walker, the report's author, said two out of three key drivers of demand would decline over 2012-13 in Melbourne. Business stocks, the big driver of warehouse demand, would be hit by a downturn in construction, joining declining public-sector investment and slowing private consumption.


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