Australia’s commercial property market has shown resilience in 2024, with average sale prices increasing by seven per cent and transaction volumes on track to exceed $1.4 billion.
Burgess Rawson Partner, Matthew Wright said the market has demonstrated strong performance across key sectors, with notable increases in both yields and sales volumes.
“The average sale price for premium Australian commercial investment assets has increased from $3.64 million to $3.9 million in 2024,” Mr Wright said.
“This year is looking at surpassing our $1.29 billion in transactions recorded in 2023 with $1.25 billion already sold to date.”
Mr Wright said the convenience retail sector has shown particular resilience.
“Yields have stabilised at 6.38 per cent in 2024, with sales numbers climbing from 27 to 35,” he said.
“Transaction volume surged by over $45 million, from $132.7 million in 2023 to $178.2 million in 2024.”
The fast food sector has emerged as a standout performer according to Mr Wright.
“Yields have compressed from 4.56 per cent to 4.32 per cent, highlighting strong investor appetite,” he said.
“Sales volume grew significantly from $70.5 million to $85.6 million, despite the transaction count holding steady at 16 for both years.”
In the childcare sector, Mr Wright said he was seeing stable returns averaging 5.44 per cent.
“While sales volume reached $217 million across 39 transactions so far in 2024, the sector is on track to surpass last year’s total of $248 million,” he said.
The medical property sector has seen substantial growth, and Mr Wright said yields were stabilising around six per cent.
“Sales volume nearly doubled from $112.2 million in 2023 to $178.8 million in 2024, while transaction numbers remain steady at around 37,” he said.
“This significant increase in volume underscores growing interest in the sector, fuelled by strong demand for healthcare services.”
