Queensland Commercial Property Market Wrap – Week Ending 18 July 2025

Introduction

Queensland's commercial property market continues to show resilience, with significant activity across industrial, office, retail, and residential development sectors. This week saw a series of notable sales and leases, alongside major policy developments out of Townsville aimed at stimulating investment and urban renewal. Strong buyer demand and a focus on adaptive reuse, industrial growth, and suburban retail underline the shifting dynamics in the state’s real estate landscape.

Retail Transactions

RedEdge Shopping Centre, Redland Bay
A private Brisbane investor acquired RedEdge for $18.5 million in an off-market deal. Anchored by IGA and supported by allied health tenants including a pharmacy and medical centre, the centre offers a diversified tenant mix in a fast-growing corridor. The asset last sold in 2017 for $15.6 million.

Metro Middle Park, Brisbane Southwest
Clarence Property paid $40.4 million for this Coles-anchored neighbourhood shopping centre in Middle Park. The 6411 sqm retail complex includes 38 specialty tenancies and sits on a 2.1-hectare site with longer-term mixed-use potential.

Industrial Transactions

117 Grindle Road, Rocklea
A private investor purchased this industrial business park for $35 million from Quintessential. The two-building estate sits on a 4-hectare site and offers over 20,400 sqm of lettable space. The asset previously sold in 2020 for $18.5 million, demonstrating strong capital growth in Brisbane’s industrial sector.

30 Seeana Place, Heathwood
Centennial sold the Heathwood Distribution Centre for $19.1 million, triple its 2016 purchase price of $7 million. The 7250 sqm warehouse is leased to Yokohama on a long-term agreement following significant refurbishment and expansion.

Office Transactions

73 Mary Street, Gympie
A premium office property in Gympie’s town centre sold for $1.05 million, delivering a net yield of 7.5%. The asset is fully leased to a café, a hair salon, and H&R Block, providing secure income from established tenants.

Brisbane Technology Park, Eight Mile Plains
Corval acquired a portfolio of seven buildings from Dexus Industria REIT for $115.2 million. The 1980s-era business park features a tenant base across life sciences, government, and technology. With just 2.8% vacancy, this is one of Brisbane’s strongest-performing suburban office precincts.

Residential Development

47 Skyring Terrace, Newstead
Consolidated Properties Group acquired the last remaining absolute riverfront development site in Newstead for $64.5 million. The 9368 sqm parcel is zoned for mixed-use and offers potential for up to 25 storeys. A development application for a luxury residential tower will be lodged later this year.

24 Monte Carlo Avenue, Surfers Paradise
Homecorp purchased this 1500 sqm riverfront site for $8.5 million. The developer plans to replace the ageing apartment complex with a new high-rise residential tower, citing strong ongoing demand for coastal lifestyle living on the Gold Coast.

Agribusiness & Rural

Balmoral Cropping Enterprise, Darling Downs
A consortium of local farmers purchased the 855-hectare Balmoral property for $25 million. Located near Pittsworth, the irrigated site includes 556 hectares under lateral irrigation and extensive water entitlements.

Leasing Activity

• 63–65 Beach Street: Berg Engineering signed a three-year lease on two adjoining office/warehouse units (990 sqm total) for $185,000 per annum.

• 11 Tradelink Road: Watts Engineering secured a three-year lease on a 207 sqm warehouse for $35,000 annually.

• 9/521 Beams Road: The Freedom Room leased a 107 sqm office for $25,000 gross per annum.

• 5A/14 Park Road: Goldfields Milton signed a two-year lease on a 187 sqm office at $90,000 per year.

• 7 Pendrey Court: Decopanels leased a 692 sqm warehouse for five years at $96,000 annually.

General News

Townsville's $275K Development Incentives

Townsville City Council has launched the 2025/26 City Activation and Housing Incentive Policy, offering unprecedented support for commercial and residential developers. Key features include:

• Up to $275,000 in waived infrastructure charges for eligible developments.

• Dollar-for-dollar facade improvement grants up to $50,000.

• Subdivision incentives in established suburbs like Hermit Park and Currajong.

• Support for adaptive reuse of heritage buildings in the CBD.

The policy aims to stimulate job creation, urban renewal, and infill housing supply—positioning Townsville as a model for regional growth and revitalisation.

Pressure on Tradie Numbers Building – Construction Jobs Facing Labour Shortage

Despite construction’s $634 billion income in 2023–24, recent ABS and labour force data highlights looming workforce pressures:

• Construction is Australia’s third-largest sector and fourth-largest employer (1.3 million people), but employment fell 2.5% year-on-year to May 2025.

• Apprenticeship commencements in construction trades dropped 12% in 2024, with sharp declines in carpenters and plumbers.

• Only 12% of the workforce are women, and just 4% of trades roles are female-held, despite demand.

• Migrant labour remains underrepresented in trades due to visa policy mismatches.

• 130,000 workers aged 60+ expected to retire over the next decade.

Impact on Commercial Property Industry:

Workforce constraints in construction threaten delivery timelines and cost control across all asset classes. Industrial projects, suburban retail refurbishments, and infill residential developments may face increased risk of delay or cost escalation. Investors and developers should account for tightening skilled labour supply in feasibility assessments and consider regions with proactive workforce or training support programs.

References

Herde, C. (2025, July 10). Homecorp snaps up $8.5m site as an ‘unmissable opportunity’. The Courier-Mail, p. 66.

Herde, C. (2025, July 10). Newman offloads shops. The Courier-Mail, p. 66.

Herde, C. (2025, July 10). Sale backs up demand. The Courier-Mail, p. 65.

Smith, L. (2025, July 10). Building on solid ground. Townsville Bulletin, p. 18.

Miles, T. (2025, July 10). Two Queensland cattle and cropping farms fetch $45m at auctions. The Australian.

Wilmot, B. (2025, July 10). Dexus trust offloading Brisbane tech park. The Australian, p. 20.

Herde, C. (2025, July 10). Tower on the money. The Courier-Mail, p. 67.

Herde, C. (2025, July 10). Plans for riverfront gem. The Courier-Mail, p. 68.

Herde, C. (2025, July 10). City deals looking up. The Courier-Mail, p. 69.

Herde, C. Leases. (2025, July 10). The Courier-Mail, p. 66.

Kannan, H. H. P. (2025, July 17). Pressure on tradie numbers building – Construction jobs. The Australian, Real Commercial, p. 21

For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.

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