Knight Frank’s Horizon 2025 report predicts renewed opportunities in Australia’s commercial property market are on the way, making it a promising year for investors.
- Market recovery in sight
Core assets in Australian commercial property are poised for recovery, with Sydney’s industrial and CBD office markets leading the way.
- Interest rates will drive strategy
The Reserve Bank of Australia’s interest rate policy will shape market dynamics, with investors needing solid strategies for varying rate scenarios.
- Investors set to re-enter
Renewed confidence and revised strategies are expected to drive higher liquidity and broader interest across all asset classes.
- Office market adjustments
While vacancy rates remain high, fewer new developments in Sydney and Brisbane could push up rents for premium office spaces.
- Industrial rents diverge
Rental performance will vary, with oversupplied markets like Sydney’s Outer West seeing weaker growth compared to tighter markets like South Sydney.
- Retail revival
Investor demand for retail assets is at its strongest since 2015, fuelled by rising incomes and improving performance.
