Capital Transactions Insights

Australia has long been one of the top destinations for international students, drawn by its high-quality education system, multicultural environment, and attractive lifestyle. However, the relationship between universities, international students, and the housing sector has become increasingly strained.   International students represent a critical source of revenue for Australian unive...

The Economy Brisbane’s momentum is building, and the majority of the city’s industries and services are growing. Brisbane is the fastest growing major Australian capital city over the past 10 years with a further 34% growth expected over the lead up to the 2032 Olympic Games. Stable governance and ease of doing business turn growth opportunities into reality, exemplified by Brisban...

As one of Australia’s largest industries, the Property sector is well-positioned to use its influence to address social issues and drive sustainable outcomes. Environmental, Social, Governance (ESG) is a major consideration for landlords and occupiers, bringing to light issues like climate change and resource scarcity. While these are important environmental factors, ESG covers a much br...

A roof over their head is a basic right that Brisbane residents are struggling to find. With significant population growth of 3.1% over the past year, boosted by interstate and overseas migration, Brisbane property prices increased by 14.8% year-on-year to January 2024 (ABS, 2024). With a median price tag of $899,474 purchasing a home seems much more achievable for residents from the southern ...

The best way to sum up 2023 is "RE”, and I don't mean Real Estate. Across the board, we saw investors and developers REvaluing, REassessing opportunities, REassuring investors, REsilience of strategy, REtargeting assets and REdirecting capital. 2023 saw a noticeable shift in Brisbane's commercial real estate market, significantly reducing transaction volumes. The shift mainly triggered b...

RATES & INFLATION Last week our ever-prudent Reserve Bank decided to keep interest rates on hold at 4.1%. This was off the back of the June quarter, where inflation fell to 6% (slowing from 7% in March), falling short of the expected 6.2%. The fall in CPI can be attributed to cost decreases in domestic travel and accommodation, as well as automotive fuel, while the costs of most other good...

Tax incentives on offer for BTR in Queensland  A reduction in land tax of up to 50% for up to 20 years for BTR developments which feature at least 10% of rental homes as affordable housing; A full exemption for the 2% foreign investor land tax surcharge for up to 20 years; and A full exemption from Additional Foreign Acquirer Duty (AFAD) for the future transfer of BTR sites. (KPMG,...

Rainforest Tower (QIC - $1.2bn) QIC’s “Rainforest Tower” is located at 101 Albert Street, in the heart of Brisbane’s CBD and fronting onto the new Albert Street Cross River Rail Station. The 2,500m2 site will be home to around 45,000m2 of mixed use space in the form of a 40 level structure incorporating a 5-level podium with an additional 35 level tower above. The build...

The Gabba and Brisbane Live arena  The state and federal governments have reached a funding agreement to redevelop the Gabba and Brisbane Live. Queensland state government will fund the Gabba to the tune of $2.1bn, up from the original estimation of $1bn in 2021, with demolition commencing in 2026 after the Ashes cricket tests in 2025. Monumental cost blowout aside, this is a big win for ...

In general terms, the performance of the Neighbourhood Retail sub-sector has been exceptional, driven initially by covid related themes such as compulsory masks, lockdowns and the push for ongoing work-from-home arrangements, largely accommodated by the major corporates and the public service sector. This has created a reluctance to travel to major centres and has curved our daily spending habi...

As we hit the ground running with optimism and gusto in the New Year, our Capital Transactions team conducted a think-tank session analysing Brisbane's commercial real estate economy and what our clients need to know when investing and developing in the current environment. The result was that we needed to investigate the stubbornly high inflation figure better to understand the interest rate c...

1.      How has the appetite of the top-tier lenders changed over the past 6-months? And how is that reflected in their lending policy? (LVR, ICR, Geographical/Asset Class Appetite) The biggest change in appetite has been driven by the rising cost of funds and its effect on the Interest Coverage Ratio’s & overall serviceability. Recently, I’ve observed some banks...

Despite ongoing pressure on household budgets, Queensland’s Retail trade has remained remarkably strong throughout the year, recording its 9th straight month of growth. Queensland’s seasonally adjusted retail turnover has increased by 9.7% over the past 12 months.   Australian hospitality businesses are set to benefit the most from the imminent Christmas spending spree, with ...

The development site space is the most talked about sector in our market at the moment. With development margins either being squeezed or non-existent, the conundrum that a project has strong underlying demand for the end product, but the financial viability of the project simply doesn’t stack-up is a common narrative. The result of this is downward pressure on site values as developers l...

Brisbane’s office market continues to show signs of recovery in net absorption and occupancy rates, assisted by a lack of new supply coming online and more workers returning to traditional office hours.    Driven by significant population growth, major infrastructure investment, and a 13-year low in unemployment, the immediate future looks bright for our CBD. However, there is...

With the Reserve Bank of Australia (RBA) raising the Official Cash Rate on Tuesday by 25bps to 2.6%, commercial property investors and developers will be looking to reassess where they see real value and how much risk appetite they are willing to accept. The rate hike marks the sixth rise from the RBA since May this year, with most economists predicting further rate rises over the coming 6-12 m...

A rare freestanding retail and office building in Brunswick Mall, situated directly opposite one of Fortitude Valley’s major live music venues, has been swiftly acquired by an investor eager to capitalise on the precinct’s growing investment appeal. Samford Commercial Investments purchased the three-level property at 281 Brunswick Street for $6.45 million despite its being approx...