Market Update – H1 2025

The rapid rise of e-commerce, population growth, and business expansion has fuelled record demand for strata industrial units, particularly in well-connected urban corridors. However, industrial land supply remains constrained despite rezoning efforts by the Victorian Planning Authority. The market is lagging in meeting growing demand prompting developers to respond with high quality, flexible industrial developments that cater to modern business needs.

Despite broader economic pressures such as concerns regarding interest rate fluctuations and inflation, the strata industrial segment has demonstrated resilience. It continues to attract business owners seeking long security alongside institutional investors and private syndicates looking for high growth industrial exposure.

With shifting market dynamics challenging traditional property asset classes such as office and retail, light industrial property remains a standout performer. Given the persistent supply-demand imbalance and strong structural drivers, the Melbourne industrial market is expected to sustain its robust growth trajectory.