Commercial property poised for recovery in 2025
Better Loan Solutions in Mornington Peninsula • Learning Centre • Insights
Better Loan Solutions in Mornington Peninsula • Learning Centre • Insights
The Australian commercial property market is set for a rebound in 2025, amid changing market conditions and renewed investor interest, with
core assets expected to lead the recovery. According to Knight Frank's Australian Horizon 2025 report, time is of the essence, and investors
who acquire assets following the market adjustment, but before the recovery begins, are positioned for strong growth.
Chief economist Ben Burston highlighted the opportunities currently available in the market. "Our central thesis is that core assets in
the Australian market now represent good value for investors, with strong prospects for cyclical recovery starting in 2025 and long-term
growth," Mr Burston said.
The retail sector is experiencing its strongest investor demand since 2015, driven by improving asset performance and rising real incomes.
This surge in interest is expected to contribute to a recovery in capital values due to limited available stock.
Industrial markets are showing signs of divergence, with rental performance varying significantly between regions. Sydney's Outer West and
West Melbourne face pressure from high supply levels, while South Sydney and East Melbourne demonstrate more resilient market
conditions.
The office sector continues to contend with high vacancy rates, however new development slowdowns, particularly in Sydney and Brisbane, are
expected to drive face rents higher on new projects.
Build-to-rent (BTR) development is gaining momentum, though its success depends heavily on policy changes and market acceptance. "The
perceived success of schemes targeting the middle of the rental range will be important in widening awareness and understanding of
BTR." Mr Burston said.
Interest rates remain a significant factor in shaping market recovery, he said. "Investors will need to be tuned into the evolving
debate on neutral rates and ensure their strategy is resilient to multiple scenarios for the level of long-term interest rates," he
said. "Now is the time to buy, and this optimal window will extend into 2025.”
Consider a balanced property portfolio including both residential
and commercial investments based on your goals. We're here to
assist with your lending needs.
ALL DAY CONFERENCE @ Mornington Racecourse
6 May 2025 - 8:30am - 5:30pm
In today’s fast-changing world, staying competitive means embracing new trends and technologies. At B.I.T.E.
Conference 2025, you'll discover groundbreaking strategies and tools—like A.I. and robotic process automation—designed to
help you navigate and succeed in the evolving business landscape.
Aged care financial planning is a highly specialised area that requires not only financial expertise but also an understanding of the
emotional challenges families face. In this episode of The Accountant That Builds, host Shannon Smit sits down with Aged Care Financial
Advice specialists to unpack the complexities of aged care funding.
In today’s fast-paced world, productivity has become a paramount concern for professionals and business owners alike. We constantly strive to optimise our workflows, eliminate inefficiencies, and maximise the value we derive from every minute of our day. One of the key steps in achieving this is recognising the habits and tasks that drain our productivity and replacing them with more effective strategies.