Industrial land prices hit record

Industrial land prices across the country are booming to record levels, with Perth and Brisbane land owners the biggest winners.

A report on industrial land prices by Colliers, reported in the Australian Financial Review, says industrial land prices in Perth and Brisbane have now reached $600 per square metre, prices that in some cases represent a 30% increase on last year.

Prices have grown more slowly in New South Wales, but average prices of $1600 per square metre in the South Sydney area now represent close to a 100% gain on three years ago.

Melbourne has not quite reached the heady heights of the other states, however, with industrial land in the cities east going for about $250 per square metre and $150–200 per square metre in the west.

Strong demand was also enjoyed by the commercial construction industry in 2006-07, according to the Housing Industry Australia Construction 100 report covered by the AFR.

In 2006-07 almost $90 billion worth of commercial construction work was commenced, a 17.7% increase on the previous year.

Leighton Group won the biggest share of commercial construction in 2006-07 with $11.8 billion of new contracts.