CoreLogic has collected 13 preliminary auction events so far in 2018, with the commercial auction space typically slow to accelerate at the start of the year, and commercial data still trickling in to our database.
In commercial auctions, preliminary results indicate 6 successful sales at auction across Australia so far this year.
The two highest cleared auction results in our preliminary collection were warehouses in Harlaxton in Queensland; one on North Street, and one on Jones Street. Each warehouse sold for $1.4 million, and sold in early Jan.
While industrial vacancies are relatively high in Brisbane in the wake of a mining bust and manufacturing decline, Harlaxton is a suburb of Toowoomba, located 122 km west of the Brisbane CBD.
Toowoomba has seen large amounts of local investment into the area, and was a construction hotspot over 2017. CoreLogic construction data suggests there were 103 project commencements in the Toowoomba Regional Council area over 2017, worth a combined $608 million. That represents approximately 1% of the value of commencements across Australia over the year.
The area boasts a mix of new construction types, including a freight and passenger airport, and a recently completed data centre visited by Malcom Turnbull earlier this year. Industrial sales in the area may represent high levels of confidence in the area, or acquisition for a different type of development in the future.