In Q1 2026, the strongest competition was for premium, well-located assets with secure income and strong land fundamentals.
The RBA lifted the cash rate twice to 4.10% by March while CPI held at 3.7%, yet transactions continued and capital simply moved toward assets where income and location justified the price.
Retail transaction volumes reached $2.4 billion nationally, with demand concentrated in convenience-based and non-discretionary centres. Industrial recorded $1.57 billion year-to-date, with vacancy compressing for the first time in over three years.
Office buyers focused on quality buildings and city-fringe assets with repositioning upside. Notably, CBRE estimates existing commercial property is priced around 30% below replacement cost, making acquisition of quality, income-producing assets far more compelling than development in today’s cost environment.
Q1 was about scarcity, security and quality. Buyers paid up for strong tenants, better locations and income that was hard to replicate and the assets worth owning are not staying available for long.
— Stephanie Vella
Head of Transaction Analysis and Due Dilligence