Following the Federal Government’s agreement to restrict future SMSF borrowing arrangements for residential property, investors who may have previously targeted residential units through their super funds are now reassessing where they can place capital.
RWC Western Sydney is already seeing this shift play out across its off-the-plan commercial campaigns, particularly within industrial strata.
Across two current projects in Strathfield South and Gladesville, buyer activity has accelerated with 10 per of total project stock exchanging over the past week alone. Notably, the Strathfield project has already reached its 50 per cent presale milestone while only being 25 per cent complete. This underscores the depth of demand from private investors, SMSF buyers and owner-occupiers seeking smaller-format commercial assets.
Joseph Assaf Co-owner at RWC Western Sydney and Sales Executive Harry Veall said the change could redirect a portion of residential-focused SMSF capital into commercial property, particularly industrial units where buyers can access tangible, income-producing assets at a more affordable price point than larger commercial investments.
“SMSF buyers have always been active in the commercial strata market, but this change gives them another reason to look more closely at industrial units,” Mr Assaf said.
“What we are seeing on the ground is that buyers are not waiting around. Since the announcement, we have seen enquiry convert quickly into sales across our projects, with a number of purchasers already repositioning their focus from residential to commercial."
“For many private investors, smaller industrial strata assets offer a clear entry point into commercial property, with stronger yield profiles than many residential investments. They are tangible, easy to understand, and can appeal to both investors and owner-occupiers,” Mr Veall said.
The shift comes at a time when industrial strata stock remains tightly held across Sydney, with limited new supply, strong owner-occupier demand and ongoing interest from private capital.
Mr Assaf said demand has been strongest for units priced between $900,000 and $1.2 million. He said buyers are being drawn to assets with strong visibility, good access and suitable clearance heights within mature residential catchments, where the surrounding population base supports a wider range of commercial, trade, storage and personal-use requirements.
“We expect commercial strata, particularly industrial, to remain one of the major beneficiaries if SMSF buyers continue moving away from residential investment strategies. Many developers are now reaching out to understand how they can best position their projects to capture this emerging buyer profile,” he said.
“We are already seeing the behavioural shift happen in real time.”
