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As Middle East conflict drives petrol prices to a $2.20 per litre average across Australian cities, the nation's accelerating shift toward electric vehicles has never been more apparent, with wait times for new EVs stretching to as much as three months. Yet for a growing cohort of drivers unable to charge at home, that shift has thrust service stations into the spotlight for their unexpected role: essential charging infrastructure at the heart of Australia's energy transition.

Electric vehicle sales reached 13.1 per cent of new car sales in 2025, up from 9.6 per cent the previous year, with more than 157,000 EVs sold including over 103,000 battery electric vehicles, exceeding that milestone for the first time. The total Australian EV fleet now stands at over 454,000. Yet approximately 30 per cent of Australians live in apartments or homes without dedicated parking, creating a fundamental infrastructure gap that service stations are uniquely positioned to fill. Body corporate approval processes, retrofit costs running into tens of thousands of dollars per building, and the technical complexity of upgrading electrical infrastructure in older apartment blocks create structural barriers unlikely to be resolved quickly. With EV sales forecast to reach as much as 19 per cent of new car sales in 2026, the demand for accessible public charging is only set to grow.


This convergence of soaring fuel costs, rapid EV adoption and residential charging constraints has fundamentally altered the investment thesis for service station assets. Far from facing obsolescence in an electric future, these properties have emerged as critical dual-purpose infrastructure, and the transaction market reflected that confidence. Total volume reached $867.9 million across 175 properties in 2025, a 16.5 per cent increase from 2024 and a continuation of the recovery from the trough recorded in 2023, when tighter lending conditions weighed on activity across most commercial property sectors. While still well below the peaks recorded in 2019 and 2020, the trajectory is encouraging and the buyer composition has broadened, with private investors representing 85.1 per cent of acquisitions alongside listed funds and private syndicates. Average capitalisation rates compressed to 6.0 per cent, albeit can range between 4.0 and 9.0 per cent depending on location and lease covenant, suggesting growing confidence in the sector's long-term viability.

The most valuable service station transactions in 2025 reflected this evolution toward integrated quick service restaurant offerings, demonstrating that investors increasingly value service stations not merely as fuel retail sites but as strategically located properties anchored by quality QSR tenants. Quick service restaurants have emerged as an asset class in their own right, with investors attracted to their predictable cash flows, strong tenant covenants and proven performance through economic cycles. When combined with fuel retail on high-traffic sites, these properties create diversified income streams less dependent on any single revenue source. The presence of established QSR operators like McDonald's, KFC, Hungry Jack's and major coffee chains alongside fuel retail has become a key value driver in service station transactions.

The longer dwell times associated with electric vehicle charging, typically 20 to 40 minutes compared to five minutes for fuel stops, create enhanced opportunities for QSR, coffee and convenience retail. Several 2025 transactions specifically highlighted expanded retail offerings commanding premium valuations, with properties that successfully integrate these elements trading on cap rates as tight as 4.0 per cent for well-positioned assets featuring quality tenants.

Two consecutive interest rate increases already recorded in 2026 will put some strain on financing conditions, though the depth of the 2025 market suggests the investment case is not rate-dependent. The 175 properties transacted mostly attracted private buyers, with strong activity in Brisbane and Adelaide demonstrating that well-located suburban nodes can attract institutional-quality capital regardless of market size. Service stations occupy prominent main road sites, generate diversified income streams, and are structurally positioned to capture the growing EV charging market as residential solutions remain years away for much of the apartment-dwelling population. The $867.9 million transacted in 2025 reflects investors who have moved well beyond fuel retail alone, viewing these assets instead as necessary urban infrastructure.


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