A private developer has bought a vacant block of industrial land in Perth’s east from Metallica Property Development for $20.6 million amid ongoing strong demand for infill industrial sites. 

The buyer intends to take advantage of the 48,473sqm site’s prime locational characteristics in Hazelmere and surrounding transportation routes and develop into a prime 20,000sqm warehousing and logistics facility. 

Knight Frank’s Tom Iredell, who negotiated the off-market deal, said industrial infill sites of scale were increasingly rare in the current market, but demand remained strong, particularly for well-located opportunities, hence the strong sales result for the Hazelmere property.  

“The sale rate of $425 per square metre is significant based on the size of the property demonstrating the demand for development sites of scale in Perth with capacity to house major tenants,” he said.  

“Rising rental rates on the back of tenant demand consistently outperforming supply is helping to hold industrial values for development stock.”  

Knight Frank’s latest Australian Industrial Review found there had been renewed demand for industrial land in Hazelmere this year, with increases to land values, particularly for larger allotments.  

Iredell said Hazelmere was sought after by industrial users due to its connectivity to Perth’s major transportation routes and proximity to key infrastructure such as the Perth Airport and CBD.  

“Hazelmere is also home to larger-scale industrial lots which are becoming increasingly rare in today’s market,” he said.  

“The property at 26 Central Avenue is situated on the Main Roads heavy haulage network, providing RAV 7 access to Bushmead Road.”