This week’s Federal Budget has accelerated something we were already seeing on the ground, a widening divide between premium assets and everything else.
By now you will have seen the headlines from Tuesday night’s Federal Budget.
The Budget has accelerated something that was already in motion, a widening divide between premium assets and everything else. For years, investors chased yield because debt was cheap and almost everything was rising. That environment no longer exists and the difference between owning the right asset versus the wrong one over the next decade will be significant.
We expect transaction activity to increase across 2026 and 2027 as investors reposition portfolios, while demand continues concentrating toward high-quality assets with stronger long-term fundamentals.
We think investors are entering a period where buying the right asset will matter significantly more than simply buying any asset.
Access to opportunities will become increasingly critical.
In this market, relationships matter. Being able to secure off-market and pre-market opportunities is more important than ever.
FOR INVESTORS
Investors are repositioning with purpose. We are seeing a clear shift toward national tenants, premium metro locations, long WALE assets and essential-service sectors.
Owners are either locking in gains or moving into stronger assets and the activity is picking up. What concerns me is how many secondary-grade investments are still trading without properly reflecting the underlying risk.
We believe these assets could face a substantial pricing adjustment as buyers become increasingly focused on quality and long-term fundamentals.
FOR DEVELOPERS
The housing incentives in this Budget will drive real competition for well-located development sites, particularly in tightly held metropolitan and growth markets.
We anticipate experienced developers and institutional capital will lead the way. Early sentiment from the market is positive, particularly around demand for newly developed product.
The Budget is creating a much bigger divide between new and established housing which is increasing demand for well-located sites nationally.
Feasibility, construction costs and access to qualified builders remain the real pressure points and fundamentals such as infrastructure and long-term demand are now driving every serious decision.
FOR BUSINESS-OWNERS
If you are currently renting your premises and have been considering ownership, this market is telling you something. Rising rents, limited supply and replacement costs are making the shift from tenant to owner more compelling than ever and many business owners are realising they should have made that move sooner.
The best commercial properties in premium locations are becoming genuinely difficult to replace and you are now competing with private investors and institutional funds for the same assets.
The next phase of this cycle will reward the right advice, strategic planning and access to the right property.