Industrial Rents and Land Values in Sydney Property Market

Author

Start Page / End Page

Volume

Issue Number

Year

Publication

Jinu Kim

150 / 160

1

1

1998

International Real Estate Review

Abstract


This study aims to analyze the performance of industrial rents and land values in the Sydney property market. In the Sydney industrial property market, no growth of the rents and marginal growth of the land values in real terms has been seen between 1976 to 1996. It means that the overall return from an investment in industrial property is achieved largely from initial yield and current rental incomes, rather than rental growth and capital appreciation. The trends of real growth of industrial rents and land values have a similar cycle, but different magnitude (a or s) of fluctuation. It is concluded that industrial rent is determined more by demand than supply side factors, while land value is determined more by supply side factors than demand side factors.
 

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