NOW IS THE INFLECTION POINT:
After a period of uncertainty, Australia’s commercial property market is showing clear signs of resurgence. Interest rate stability, strong population growth, and renewed investor appetite are creating the conditions for a new growth cycle across office, industrial, and retail sectors. With confidence rebounding and capital starting to flow back in, early movers are positioning themselves to capitalise on what many believe is a market turning point.
Here are 6 reasons why Property Strats see Commercial Property rebounding:
Investor Confidence is Rebounding:
Falling interest rates and stabilising bond yields are reigniting buyer interest across office, industrial, and retail sectors. Renewed confidence is translating into stronger deal flow and upward pressure on valuations in key metropolitan and regional markets.
Investment Volumes Are Surging:
Commercial property investment is projected to grow by 15% in 2025 and 23% in 2026, reaching $44 billion. Office transactions alone rose 56% year-on-year in 2024, a clear indication that momentum is building. We anticipate the surge will occur from July onwards given the new financial year.
Demand Driven by Population & Infrastructure Growth:
Australia’s population is expected to grow by 3.9 million over the next decade, underpinned by record migration. Concurrently, large-scale infrastructure investment is fuelling demand across logistics, retail, and office segments
Tight Supply Is Driving Value:
Construction delays and surging building costs—now 25–45% above the value of existing stock—are constraining new supply. This has intensified competition for quality existing assets, supporting capital values and rental growth.
Offshore and Institutional Buyers Are Returning:
Global capital is flowing back into the Australian market, particularly into premium metro assets. The return of institutional and offshore investors is a strong signal of confidence in long-term fundamentals.
Now Is the Inflection Point:
Market leaders, including Charter Hall, believe we have reached the bottom of the cycle. Valuation declines have stabilised, and early movers are now actively acquiring prime assets at attractive yields ahead of the next growth phase.
As we move into 2025 and beyond, the case for commercial property investment in Australia is strengthening. Supply constraints, long-term demographic trends, and institutional re-entry are setting the stage for sustained value growth. For investors with a strategic outlook, now is the time to engage—before competition intensifies and yields begin to compress. The inflection point is here, and those who act early are likely to be rewarded.
If you’re looking to explore more commercial investment opportunities, please feel free to contact us.
