Research

Tenant activity has returned to Australian CBD office markets, signalling renewed business confidence. But the volume of new supply completing means vacancy remains elevated and will take years to absorb at current demand levels.

Australia's CBD office recovery gaining traction as supply freeze meets improving occupier demand. Sydney and Brisbane show encouraging signs while development economics make new supply unviable, protecting existing asset values.

Institutional capital flows are reversing direction. Where retail and industrial sectors saw predominantly selling activity in 2023-24, institutional buyers are now dominating acquisitions. Build-to-rent and living sectors are attracting fresh allocations.

Australia has over 1.6 million university students but only around 90,000 purpose-built student beds in the private sector. This undersupply has attracted offshore institutional capital seeking exposure to what was previously an underdeveloped asset class.

The conventional property investment approach focuses on tourism in urban locations. Yet agritourism visitors stay longer, spend more, and represent a distinct market concentrated in regional wine regions and agricultural areas.

Commercial property recorded strong transaction activity in 2025 with volumes up 27 per cent from the previous year. Institutional capital has returned to the market, driving higher average deal sizes across sectors.

Australia's commercial property market is diverging sharply by state. South Australia leads with strong industrial growth expectations, while Victoria's policy challenges are driving investment decisions interstate.

2026 property forecast: residential living sectors go institutional, retail continues rise, construction activity returns, sustainability credentials determine capital access. Premium office outperforms secondary stock significantly.

Australia's hotel sector gathers momentum as summer approaches. Transaction volumes surge while occupancy rates strengthen across major markets. International visitor spending climbs sharply, positioning the sector well for peak season trading.

Black Friday reveals retail's evolution, not decline. Online and physical channels work together as omnichannel ecosystem. Retail property posts 8.2% total returns with strong performance across NSW (9.0%) and Queensland (8.7%).

Australian commercial property posts 6.1% total returns as capital growth emerges. Retail strongest at 8.2%, industrial at 7.6%. Institutional buyers return, signalling confidence in sector fundamentals and supply constraints.

NABERS ratings now determine access to capital as integration with Australia's Sustainable Finance Taxonomy reshapes commercial property financing. Strong ratings unlock preferential green finance, while weak credentials face financing headwinds.