Buyers increasingly targeting assets that offer income stability, strong lease covenants, and long-term growth potential.
Yosh Mendis, Burgess Rawson National Partner, Head of Agency NSW, explains that recent tariff speculation and global trade tensions have rattled share markets.
“Australia’s S&P/ASX 200 index experienced volatility earlier this year, reflecting investor nervousness. However, while equities fluctuate, long-term, income-producing assets like commercial real estate are attracting increased interest.”
In recent weeks, while the S&P/ASX 200 rose modestly by 0.2%, property stocks outperformed other sectors with a 1.8% gain. Leaders included Goodman Group (+3.3%), Stockland (+1.5%), and Charter Hall (+3%).
He says this outperformance highlights the confidence institutional investors continue to place in the sector’s fundamentals and its perceived resilience amid global uncertainty.
The Reserve Bank of Australia (RBA) has held the cash rate steady at 4.10% since late 2024.
With inflation easing, economists are anticipating a possible rate cut in May 2025, with further reductions likely throughout the year.
“If rates fall, investor appetite for commercial property could intensify, as lower borrowing costs improve yields and investment viability.”
Mr Mendis says policy certainty is playing a growing role in driving interest toward specific asset classes.
In the early childhood sector, both major political parties have committed to large-scale reforms.
Labor’s plan includes a $3.6 billion wage subsidy and a $1 billion expansion program aimed at boosting educator retention and centre capacity.
These measures are driving increased investor attention to childcare facilities, particularly in areas with strong demographic growth and government support.