Western Australia will need nearly 1 million square metres of additional industrial land over the next four years or risk supply chain disruptions and higher consumer costs, according to a new report.
Modelling contained in a new Property Council WA and JLL report shows at least 943,000 sqm of additional industrial land is needed by mid-2028 to keep up with the state’s projected population growth.
Property Council WA Deputy Executive Director Daevid Anderson said there has been a long-term undersupply of industrial land space.
“West Australians are already grappling with high cost-of-living pressures.
“To ensure there are stable supply chains for goods coming into Western Australia, and avoid further cost escalations at the checkout or online, the state will need almost one million square metres of additional industrial land by mid-2028
“The long-term undersupply that we’ve seen in Western Australia’s housing market has also played out in the industrial land space. We’re experiencing a shadow rental crisis.
“We risk a drop in economic productivity if we’re unable to deliver this additional industrial land supply. We can’t afford to slip further behind.
“An ample supply of development-ready industrial land is also essential for the WA and Australian governments’ advanced manufacturing and decarbonisation agenda.”
The additional 943,000 square metres figure does not take into account the additional industrial land supply that would be needed to accommodate the WA and Australian governments’ advanced manufacturing and decarbonisation goals.
The WA Government announced in its Budget earlier this year that it will invest half a billion dollars to unlock Western Australia’s strategic industrial areas (SIAs) and pave the way for WA to become a global clean energy powerhouse.
WA is home to 13 SIAs, spanning the entire State: Browse, Boodarie, Burrup, Maitland, Anketell, Ashburton North, Oakajee, Kwinana, Rockingham, Kemerton, Shotts, Mungari and Mirambeena.