The prime industrial market in Melbourne is expected to fare the best compared to other cities in the county and even the Asia-Pacific region until 2014 based on a fair value index report made by property advisers DTZ.

The city's rental rates for the same period look good with a projected 4.63 percent increase per year, its key distribution hub will surely benefit from higher rent as more trade flows into the economy. Investment made in Melbourne's industrial market is forecast to earn 16 percent returns annually. Following Melbourne? Perth is also expected to perform well at 13 percent, Sydney at 12 percent, the Gold Coast at 12 percent and Brisbane at 11 percent.

David Green-Morgan, the company's head of Asia-Pacific research, Melbourne's prime industrial market is categorized as hot because property rates are undervalued by 12 percent. Richard O'Callaghan, DTZ's director of industrial and logistics, added that the latest sales supported this belief having initial yields of 9.92 percent and 10.47 percent - further supported the report.

"We are also seeing evidence of increased demand for well-located assets with strong underlying land values," he said.

The Asia Pacific all-property DTZ Fair Value Index aims to offer investors insight into the relative attractiveness of current pricing in global commercial property markets. It measures investor opportunity in prime office, retail and industrial property markets across Europe, Asia Pacific and the United States.