A planned business and lifestyle precinct in Penrith has become a big draw for property buyers, with 13 industrial lots in the coming Nepean Business Park selling for $64m.
The individual sites within the planned business park sold for between $2.7m and more than $11m.
Nepean Business Park will be a $2 billion, 47Ha industrial and enterprise hub that will include warehouses, showrooms and community hub with cafes eateries and local services.
Agents linked to the sales said they demonstrated high demand for industrial land in high growth suburbs.
The Nepean Business Park promises to create a central “hub” for small business owners. Picture: Nepean Business Park
John Micallef, the director of CBRE Western Sydney Industrial and Logistics team that sold the properties, said a shortage of serviced industrial land meant the rare sites that did come up for sale were hotly contested.
“Our data shows only around 4 per cent of zoned land is undeveloped and ready to go,” Mr Micallef said.
“Buyers are willing to pay a premium for something they can act on immediately, rather than taking on the time, cost and risk of bringing land to market themselves,” he said.
MORE: Doubts mounting over NSW building targets
The 47 hectare project is located two kilometres from the Penrith CBD. Picture: Nepean Business Park
Matthew Alessi, the associate director at CBRE Western Sydney, said demand was outstripping supply and prompting buyers to move quicker than usual.
“Groups that might have sat on the sidelines 12 to 18 months ago are now far more prepared to move quickly when well-located, serviced land becomes available,” Mr Alessi said.
“The mix (of buyers) was telling as well.
“Developers, owner-occupiers and investors were all competing for the same sites, which shows how limited these opportunities have become, particularly in growth areas like Penrith,” he said.
Plans for the park include a connection to the Great River Walk for pedestrians and cyclists. Picture: Nepean Business Park
The development runs alongside the Nepean River and sits on the corner of Old Castlereagh Rd and Lugard St, 2km from the Penrith CBD.
Artist impressions of the site show a connection to the Great River Walk and bustling local shops.
MORE: Southwest Sydney hub to get new water park
There are plans for the pedestrian and cycleway to eventually link to the Sydney International Regatta Centre, Castlereagh Village and the Penrith Lakes Parklands.
The park’s website also promises to directly and indirectly create tens of thousands of jobs through initial construction work and permanent businesses.
The initial 13 sites range from 2,070-9,885sqm. Picture: Nepean Business Park
Stage three of sales at the site consisted of lots ranging from 2,070sqm to 9,885sqm, with a total combined area of 53,368sqm.
There are also pre-approved building plans available, which should help speed up construction.
Stage four sales have now also been opened as a result of the high demand.