Commercial activity surges in south west Sydney

The recent $2.6 million sale of a major residential site at Hoxton Park in Sydney’s south west to residential developer M&D Services Pty Ltd indicates a stabilisation in the commercial market, according to CB Richard Ellis (CBRE).

CBRE agent Harry Bui said the sale campaign had attracted considerable enquiry from residential developments seeking “land banking” opportunities.

“The stabilisation of the residential market and projected growth in coming years is underpinning demand for well located sites in population growth corridors,” Mr Bui said.

According to Mr Bui, Hoxton Park in western Sydney is affordable, close to major transport infrastructure and one of the fastest growing suburbs in Sydney.

Meanwhile, a boost in leasing is presenting opportunities for commercial brokers, with freight and logistics companies driving a turnaround in the south Sydney market.

A new market review from CBRE shows that more than 35,000 square metres of space has been absorbed in the past three months in a series of deals involving freight and logistics operators.

CBRE south Sydney managing director Nathan Egan said the activity had left limited options for major space users.

“A growing number of corporates are outsourcing their logistics requirements to save on property and staff costs,” Mr Egan said.

And a series of smaller logistics deals have also been struck in recent months, including a 5,244 square metre commitment by DSV Air & Sea Pty Ltd to Goodman’s Portside estate at Banksmeadow in Sydney’s south.