A game-changing new industrial subdivision in Auckland’s fast-growing south offers owner-occupiers and investors a rare opportunity to secure their own land at an affordable price point.
Fernleigh Industrial Estate is a carefully considered development that will comprise 32 ready-to-build lots in Waiuku, less than 25 minutes from Drury and under an hour from Auckland’s CBD.
Most of the lots are around the 1,000sq m sweet spot – a size highly sought by small to medium enterprises, but increasingly hard to find anywhere in Auckland.
The estate itself is strategically located in an up-and-coming area that offers excellent value and growth potential, as prices continue to rise in surrounding industrial precincts.
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Colliers International has been appointed to offer Fernleigh Industrial Estate to the market, with individual lots of between 690sq m to 9,700sq m available to purchase in the first stage.
Jeff Davidson, Projects Director at Colliers, says the estate is a truly unique offering, being the first of its kind in the local area.
“Fernleigh will be a game-changer for occupiers and investors who have been priced out of the market by rising land values and competition from deep-pocketed developers.
“For many years it has been very difficult for any business, and small to medium enterprises in particular, to buy land in Auckland’s established industrial precincts.
“While Auckland does have a modest amount of developable vacant land, much of it is in larger lots that are typically owned by developers or investors who generally build to lease rather than selling.
“The shortage and cost of industrial land, and of smaller freehold lots in particular, has prompted the planning and development of Fernleigh Industrial Estate off Cornwall Road in Waiuku.
“Fernleigh provides a rare opportunity for occupiers and investors to acquire their own ready-to-build industrial land at entry-level pricing.
“As the tremendous growth of Auckland’s south continues apace, this is a superb chance to secure a spot in a future industrial hub while land prices remain within reach.”
Alan McMahon, Strategic Advisory Director at Colliers, says history suggests there is enormous growth potential in fringe industrial locations like Waiuku.
“In the last five years, industrial land values have at least doubled in most of Auckland’s established precincts.
“The excess of demand over supply has caused price escalation not only in well-established areas such as Penrose, Onehunga and Otahuhu, but also more recently in areas such as Wiri, and now in Drury, Pukekohe and Takanini as the shortage bites.
“If history repeats, industrial land values in Waiuku are likely to follow the same growth trajectory.”
McMahon points out that 20 years ago, Wiri was considered a fringe location at Auckland’s southern edge, with land changing hands at less than $100/sq m.
“As Auckland grew to the south, Wiri became a mainstream location, with average land values now at $650 per square metre – and there are examples of sales well in excess of the average.
“The rise of Drury South, Takanini, and Pukekohe is further evidence of Auckland’s southern growth, triggering demand for industrial land in these hitherto largely non-commercial centres.”
Average industrial land values are estimated to be $400 to $450/sq m in Takanini and Pukekohe. Sales in this range and higher have also occurred in Drury South, where sale prices have risen from $300 to over $500/sq m in a short space of time.
McMahon says there are very few opportunities to purchase smaller industrial landholdings in Auckland’s growing south.
“A review of land transactions tells us that from 2017 to early 2020, only six plots of industrial land of less than 1,000sq m, and 13 between 1,000sq m and 5,000sq m, were sold in Franklin District and the former Manukau City area.
“Of that total, only four were in Franklin District, underlining the lack of opportunities for businesses to secure their own land.”
The bulk of Fernleigh Industrial Estate’s lots are around 1,000sq m in size, making up some 75 per cent of stock available in the first stage.
Each of the 32 lots will benefit from comprehensive work by the developer, including full services and roading, enabling construction to commence without delay.
Davidson says the sites will offer great flexibility for a range of buyers.
“An owner-occupier could purpose-build a new facility to the specific needs of their business, while an investor could build to lease, taking advantage of strong tenant demand for flexible, modern industrial space.
“Colliers can assist prospective purchasers by connecting them with architects and builders who will be able design and construct a modern, cost-effective industrial facility for their chosen site.
“Alternatively, the lots are suitable for yard-based uses such as heavy machinery, truck or boat storage. A potential purchaser could buy the land now and develop later, or land bank for future capital gains as Auckland’s south continues to grow.
“With so many options at such an affordable price point, we expect strong demand from all manner of buyers.”
Davidson says Waiuku is an ideal location for small to medium businesses, being situated between the large Auckland market and the Golden Triangle’s growth centres of Hamilton and Tauranga.
“Infrastructure improvements, designed to keep pace with the increased traffic and population, continue to improve Waiuku’s accessibility.
“Improvements to the Southern Corridor along State Highway 1, which have been evident for some time, will continue to improve traffic flow south to Papakura, with completion expected within 12 months. Meanwhile, the important SH22/SH1 Drury to Paerata project is in the design stage.”
Davidson says road improvements tend to have a positive effect on land values, as businesses cluster close to locations that work for them.
“Fernleigh Industrial Estate offers a compelling first-mover advantage for buyers looking to capitalise on the future growth of Auckland’s south. Savvy occupiers and investors will not want to miss out.”
