Residential and Mixed-Use Property Investment
The right asset can anchor long-term growth in fast-moving markets. At Costi Cohen, we offer residential mixed-use property services that go beyond listings — we identify, negotiate and acquire high-performing assets that combine residential income with commercial upside. From tightly held shop-top investments to mixed-tenure infill sites, our team sources the properties others can’t, backed by sharp market insight and proven acquisition strategy.
What are residential and
mixed-use investments?
Mixed-use investments blend residential living with commercial spaces, making them increasingly popular among both investors and owner-occupiers. A mixed-use property might include a café on the ground floor with apartments above, or an office space integrated into a residential block. These types of investments are increasingly popular in Australia, thanks to their versatility and ability to generate multiple streams of income.
According to AHURI research, combining private and social housing in mixed-tenure developments can increase investment flexibility and support neighbourhood diversity. These developments provide a mix of residential and commercial opportunities, which is especially attractive in cities where both housing and commercial space are in high demand. For investors looking to buy residential property with long-term upside, the ability to cross-subsidise affordable housing with private investments makes these developments financially viable while addressing social housing needs.
Additionally, mixed-use investment properties are proving adaptable to evolving urban planning trends — such as ‘15-minute neighbourhoods’ — with an increasing emphasis on walkable neighbourhoods that encourage interaction and local commerce. This versatility, combined with community-focused urban planning, makes them a resilient option for long-term investment growth.
What types of mixed-use
properties can you buy?
Mixed-use properties vary in scale, structure and investment strategy. Through our end-to-end residential mixed-use property services, Costi Cohen helps investors, syndicates and high-net-worth individuals acquire the asset types that align with their financial and planning objectives.
Here are some of the most common and investable mixed-use property formats our residential buyer’s agent help clients acquire:
- Shop-top housing: These are properties with retail or hospitality tenancies at street level and residential apartments above. They offer two income streams from a single title and are highly desirable in dense urban and suburban centres where foot traffic supports strong commercial leasing.
- Live/work spaces: Designed to accommodate both residential living and business activity, live/work properties are popular among creative professionals, consultants and small business owners. These spaces offer zoning flexibility and appeal to tenants who value convenience and autonomy.
- Retail-residential blocks: These small-to-medium mixed-use investment properties include a group of shops combined with multiple apartments, typically on the upper levels. Found in growth corridors and suburban hubs, they provide steady commercial rent with the added benefit of residential tenant stability.
- Mixed-tenure developments: These properties combine private residences with affordable or social housing, and may also include retail or office components. Investors looking to buy mixed-use property with strong ESG (Environmental, Social and Governance) credentials often target this format, especially when supported by government funding or planning incentives.
- Office-residential conversions: Ideal for urban regeneration projects, these involve repurposing or subdividing existing commercial properties to include residential accommodation. They often present uplift potential through rezoning or redevelopment and allow investors to enter tightly held inner-city locations.
Our experienced residential property consultants assess each opportunity in the context of zoning, tenant demand, local planning trends, and long-term rental viability — helping you secure the right mixed-use asset for your strategy.
What is the future for
residential and mixed-use investments?
The future for residential and mixed-use investments in Australia looks promising. As urbanisation continues, the demand for well-planned mixed-use properties is expected to rise. Cities are placing more emphasis on creating spaces that are walkable and community-oriented, which aligns well with the mixed-use model. Accordingly, local councils are increasingly supportive of developments that reduce urban sprawl by blending residential and commercial uses. This trend is expected to continue, as it offers a solution to both housing shortages and the growing demand for commercial space in inner-city areas.
However, it’s important to consider that zoning laws and regulations around mixed-use developments may change, impacting potential returns. Staying informed about local council planning trends is crucial for anyone looking to buy mixed-use property with long-term growth in mind.
Why buy residential and
mixed-use investments?
There are several reasons why residential and mixed-use investment properties can be attractive:
- Diversified income streams: Mixed-use properties allow investors to earn rent from both residential and commercial tenants. This helps reduce risk, as you’re not reliant on just one income stream. If demand for residential units drops, commercial tenants may still provide a stable income, and vice versa. As a result, residential and mixed-use investments tend to be more resilient during economic downturns.
- Higher occupancy rates: Mixed-use developments often attract long-term tenants, both residential and commercial, as these spaces provide added convenience and lifestyle benefits.
- Growth potential: As urban centres continue to grow, mixed-use properties located in prime areas are likely to appreciate in value faster than single-use residential or commercial properties.
Key factors to consider when
buying residential and mixed-use investments
Despite the benefits, there are several factors to consider before purchasing a residential or mixed-use property. Zoning regulations, planning restrictions and local council approvals are key when developing or repurposing mixed-use properties. Potential investors need to carefully assess the location, vacancy rates, existing lease agreements and future development plans in the area. Additionally, the commercial portion of mixed-use properties might be more exposed to market downturns, particularly if the business environment in the area weakens.
Maximising your return on these investments often hinges on selecting the right property in the right location, negotiating strong leases and maintaining a balance between residential and commercial uses.
What makes a good location
for mixed-use investment?
Location is one of the most decisive factors in the long-term success of a mixed-use asset. Through our residential mixed-use property services, we help clients assess both the site and how it functions across both residential and commercial contexts. We evaluate a property’s position through the lens of zoning, rental demand and retail performance, not just proximity.
Our mixed-use investment consultants assess:
- Proximity to public transport: Sites within walking distance of key transit links such as bus routes or train stations are more attractive to commuters and increase leasing potential across both residential and commercial spaces.
- Strong foot traffic and visibility: Commercial tenants rely on walk-in customers and brand exposure. Ground-floor tenancies with high visibility typically achieve stronger rental returns and lower vacancy rates.
- Local zoning and strategic overlays: Planning overlays or precinct activation strategies introduced by local councils can support approvals for higher-density or mixed-use outcomes — making these locations more flexible for future uplift.
- Lifestyle precincts: Areas near schools, cafes, parks and health services appeal to long-term tenants and owner-occupiers alike, supporting higher occupancy and tenant retention across uses.
- Undersupplied markets: Suburbs with low residential vacancy rates and limited commercial stock offer strong potential for yield growth and capital appreciation in both components of the asset.
Why buy with
Costi Cohen?
Buying residential or mixed-use properties without the guidance of an experienced buyer’s agent can expose you to significant risks. Without in-depth market knowledge, it’s easy to misjudge property values, overestimate rental returns or overlook critical zoning regulations.
Working with Costi Cohen, you get access to a team who understand the ins and outs of the commercial property market, including trends, location analysis and regulatory considerations.
We manage every aspect of the buying process, from initial research and due diligence to negotiating a fair market price for your investment. Our process has been developed to ensure you find the right property at the right price, taking into account your financial goals and plans.
How to finance the purchase
of residential and mixed-use investments
Financing mixed-use properties can be more complex than standard residential loans. Lenders often view these investments as higher risk, especially if the commercial portion makes up a significant percentage of the property. As such, interest rates may be higher, and the deposit required may be more substantial.
That said, it’s possible to finance your investment through a mixed-use property loan. This loan will be structured differently depending on the property’s use ratio between residential and commercial spaces. Lenders will then categorise the loan under commercial or residential property loans based on this ratio. A commercial buyer’s agent like Costi Cohen can connect you with finance brokers who specialise in structuring these types of loans to help you secure competitive terms.
Secure residential and mixed-
use investments with Costi Cohen
Costi Cohen offers expert residential mixed-use property services for those looking to purchase mixed-use property or expand into commercial, retail or development assets. As a trusted buyers’ agent, we help clients secure high-performing properties — from strata blocks and shopfronts to boarding houses and underutilised residential lots.
Browse our portfolio, explore our latest insights or get in touch to make your next move with confidence.
Explore some of our
Residential and Mixed-Use Investments Purchases
FAQs
How does buying mixed-use property differ from standard residential or commercial?
Mixed-use investments require an understanding of both residential and commercial dynamics — including zoning, tenancy types and financing structures. Unlike standard residential purchases, lenders often assess the proportion of commercial space, which can affect loan terms. At Costi Cohen, our buyer’s agent residential team specialises in evaluating how each component contributes to overall performance, helping clients avoid lopsided assets that underperform. When done right, mixed-use properties can offer diversified income streams and greater long-term security.
Can I purchase a mixed-use property as an owner-occupier?
Yes. Many investors choose to live in the residential portion while running a business from the commercial space, or leasing it out for extra income. Our team provides buying residential property services tailored to hybrid owner-occupier strategies — including guidance on location, compliance and future flexibility.
Are mixed-use investments suitable for long-term portfolio growth?
They can be, especially when well-positioned in areas with strong foot traffic, transport access and future rezoning or infrastructure upgrades. Mixed-use investments often offer income diversification and capital growth potential, but only if the balance between residential and commercial elements suits your risk profile and holding strategy.
We would love
to hear from you
Costi Cohen — Australia’s premier commercial real estate consultants
Whether you’re a seasoned investor or new to the market, our expertise will pave the way for your success in commercial real estate. We’ve looked after more than 250 commercial properties and are prepared to help you discover your next investment opportunity.
No matter your timeline, budget or preferred location, the expert team at Costi Cohen can help you find a commercial property that aligns with your needs. We invite you to get in touch with our team for a consultation today.
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