MALAGA WA INDUSTRIAL SUBURB GUIDE
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APRIL | 2012 PROPERTY MARKET OUTLOOK
MALAGA WA INDUSTRIAL SUBURB GUIDE
This is a guide to the industrial suburb of Malaga, Western Australia. Developed in the
1980’s, it has come into it’s own in the past decade as the expansion of the Perth
metropolitan area means that Malaga is now situated in the middle of the northern
suburbs, well placed to service the north of Perth and with good access to the airport.
EAST>
AIRPORT
Part of the City of Swan, it is promoted at the web site:
http://www.malagabusiness.com.au/
It is 12 km from Perth CBD. The major highway Reid Highway runs immediately south
of Malaga in an east-west direction.
1300 VALUER Property Intelligence for today and tomorrow
Propell National Valuers | Malaga WA | APRIL 2012 Malaga WA—Zoning Under the Metropolitan Region Scheme, Malaga is designated Industrial — see the purple area on the map below. It is in the City of Swan, and an extract of the current zoning map is shown below: The main zonings are: “Highway Service” colored blue, being most of Beach Road, Marshall Road and Malaga Drive, plus some of Alexander Drive, comprising mixed service, office and semi-retail bulky goods stores, as well as food service and the Malaga Markets. “General Industrial” colored light purple being almost all of Malaga other than the main roads. “Light Industrial” colored dark purple, being a small number of lots facing Alexander Drive. “Public Purposes” colored yellow. 2 | INDUSTRIAL MARKETS — Australia
Propell National Valuers | Malaga WA | APRIL 2012
Malaga Access
Reid Highway is the most important access route for Malaga, providing access:
· To the west, Perth city (via Mirrabooka Road), and to Wanneroo Road and the Mitchell Freeway
· To the east, Reid Highway continues to Midland and from there to the eastern states, while
nearby Reid Highway turns south and becomes Tonkin Highway with access to the airport, Kewdale
industrial area and beyond.
Beach Road is a divided road running east-west and is the central spine of Malaga providing the food
and semi-retail service area.
Malaga Drive runs north-south and splits Malaga into the older western section and the newer
eastern section.
Alexander Drive is on the western fringe of Malaga, a divided road running north-south.
Access to the north of Western Australia is via Reid Highway/Lord Street/Gnangara Road to the Great
Northern Highway.
Access to Fremantle Port is south via Reid and Tonkin Highways to Roe Highway.
There is no rail link to Malaga, the nearest train station being Warwick to the west.
Malaga is surrounded by residential suburbs of low to mid range pricing, except to the north-east
where the large bushland extent of Whiteman Park is situated.
3 | INDUSTRIAL MARKETS — Australia
Propell National Valuers | Malaga WA | APRIL 2012
Malaga Development
Older 1980’s/1990’s office, Typically newer 1990’s/2000+ office,
factory, warehouses, typi- factory, warehouses of tilt frame con-
cally brick walls. crete construction.
4 | INDUSTRIAL MARKETS — Australia
Propell National Valuers | Malaga WA | APRIL 2012
Malaga New Industrial Lots
A major new subdivision is underway at the eastern end of Malaga developed by Qube, at
the end of Beringarra Avenue.
There are also a lot of individual construction projects underway throughout Malaga,
reflecting the demand for this location. Land is priced around $500—$600/m2 at median.
5 | INDUSTRIAL MARKETS — Australia
Propell National Valuers | Malaga WA | APRIL 2012
Malaga Information
Malaga comprises approximately 660 ha of industrial land containing 3,159 separate land
titles.
Having a “General Industrial” zoning, Malaga offers more flexibility of uses than areas
having a “Light Industrial” classification. The surrounding residential areas offer a pool of
workers, as well as demand for the many specialist products that are stored in the area.
According to the Malaga Business website, there are over 2,000 businesses located in
Malaga, as compared with 800 in 1997, demonstrating the considerable growth over the
past decade.
It also records over 10,000 people working in Malaga, as compared with 5,200 in 1997.
The mix of businesses includes:
Manufacturing 31.0%
Wholesale/Distribution 12.6%
Automotive related 11.0%
Retail 12.8%
Construction/Building 12.8%
19.0%
31.8%
Manufacturing
Wholesale/Distribution
Automotive related
12.8%
Retail
Construction/Building
Other
12.8% 12.6%
11.0%
6 | INDUSTRIAL MARKETS — Australia
Propell National Valuers | Malaga WA | APRIL 2012
Malaga Industrial Sales
Number of sales p.a. Most sales in Malaga are of individual properties
100
below $1 million, with the typical sale being a tilt
90 frame concrete construction office/warehouse at
80 around $500,000.
70
The highest price sale in our records is of 42
60
Enterprise Crescent, Malaga, in November 2011 at
50
$23.003 million. Over the past 6 years we’ve recorded
40
66 sales of properties over $1 million.
30
20
The number of sales had been running around 90 p.a.
until the GFC in 2008, when they fell to 47, and have
10
been running at 50 to 60 p.a. since.
0
2005 2006 2007 2008 2009 2010 2011 2012 The value of sales hit a record $74.5 million in 2007.
Although the number of sales fell subsequently the
Total value of sales p.a. value transacted has been above $50 million p.a.
$80,000,000
For the typical smaller property, the median price of
$70,000,000
sales has risen, from $280,000 in 2005, to $515,000
$60,000,000 in 2011, which showed growth of 14.7% over 2010
$50,000,000 (the 2012 figure is first quarter only and subject to
revision).
$40,000,000
As can be seen from the graph plot of sale prices by
$30,000,000
date, there is a large cluster of sales below $500,000
$20,000,000 per sale, for which there is ready demand from owner
$10,000,000 occupiers, but there is a healthy market up to $1
million per sale.
$-
2005 2006 2007 2008 2009 2010 2011 2012
Median Price (Sales under $1 million)
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$-
2005 2006 2007 2008 2009 2010 2011 2012
Plot of sale prices by date
$1,000,000
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
Note: graph figures for 2012 are for the first quarter
only and subject to revision as new sales information
$-
Jan-04 May-05 Oct-06 Feb-08 Jul-09 Nov-10 Apr-12 Aug-13 is received.
7 | INDUSTRIAL MARKETS — Australia
Propell National Valuers | Malaga WA | APRIL 2012
Malaga—For Sale
Currently there are about 100 properties for sale in Malaga, of which 42 are priced under $1 million.
This includes 10 parcels of vacant land for sale, with prices in the range of $229/m2 to $863/m2, with
most land priced around $500/m2 to $600/m2, depending on position, level of development and
services.
< 2,000 m2 @ $408/m2
< 6,530m2 @$229/m2
< 1.05 ha @ $505/m2
255m2 @863/m2 >
LAND FOR SALE
Existing properties for sale tend to cluster into two types of property:
1. Smaller tilt-frame concrete, or older brick, warehouse units on a strata plan.
2. Larger warehouses on their own title.
The price range is similar for both, with pricing in the range of $1,600/m2 to $2,500/m2.
The actual price depends on the age of the property, and the facilities. Basic warehouses are the
cheapest, those with mezzanine or ground floor offices increase in price, while those with
showrooms, especially in prominent locations, fetch higher prices.
Industrial for sale in Malaga
$3,000
$2,800
2$2,600
m
r$2,400
e
p$2,200
e
c
ir$2,000
p$1,800
g
n
i $1,600
k
s
A$1,400
$1,200
$1,000
0 200 400 600 800 1000
Size in m2
8 | INDUSTRIAL MARKETS — Australia
Propell National Valuers | Malaga WA | APRIL 2012
Malaga—Leasing
Currently there are about 200 properties available for lease in Malaga.
Basic warehouses have:
· A typical asking rent of $90/m2 to $110/m2, and
· A size range of 150m2 to 300m2,
· Which produces annual rents in the range of $15,000 p.a. to $35,000 p.a.
The next level up is accommodation which has a proportion of office space in addition to the
warehouse. These have:
· A typical asking rent of $100/m2 to $125/m2, and
· A size range of 180m2 to 400m2,
· Which produces annual rents in the range of $18,000 p.a. to $50,000 p.a.
There are a small number of properties that are office only, over one or two levels. These have
· A typical asking rent of $100/m2 to $220/m2, and
· A size range of 100m2 to 250m2,
· Which produces annual rents in the range of $22,000 p.a. to $55,000 p.a.
There are also Showroom properties, usually with warehouse space attached, and possibly some
office space. The rent is more dependent on the location and exposure to passing traffic, but as a
range, these have:
· A range of asking rent of $90/m2 to $620m2, and
· A size range of 250m2 to 1,700m2,
· Which produces annual rents in the range of $22,000 p.a. to $300,000 p.a.
Apart from location issues, the inclusion of office or showroom space does not seem to have a great
impact on rents, adding perhaps 10% on a like comparison basis. The typical warehouse rent for
Malaga is around $100/m2.
Malaga Asking Rents
$190
2 $170
m
r $150
e
p
t $130
n
e
r
g $110
n
i
k $90
s
A
$70
$50
0 200 400 600 800 1000
Size in m2
9 | INDUSTRIAL MARKETS — Australia
Propell National Valuers | Malaga WA | APRIL 2012
Beach Road Malaga—Service Industry
FOR MORE INFORMATION
CONTACT
Philip Ragan
National Market Analyst
Perth office
pragan@propellvaluers.com
0438 991 262
PHONE
1300 VALUER
This information is provided in good faith and on the assumption that data sources are accurate. It is general information only and
not a comprehensive analysis and should not be relied on as such. Any reproduction of the contents should acknowledge Propell
National Valuers as the source. Neither Propell National Valuers nor any person involved in the production of this report accepts
any liability for its contents. Forecasts and commentary are based on a set of assumptions which may change.
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