Queensland Commercial Property Market Wrap – Week Ending 3rd July 2025

Market Overview

Queensland’s commercial property market continues to show resilience and strategic activity across office, retail, industrial and development sectors. Notable sales across Brisbane, Gold Coast, and regional centres like Cairns and Kingaroy underline steady investor appetite despite broader economic headwinds. Activity was strong in the city fringe, and buyers remain particularly focused on quality, long-leased assets and sites with future development upside.

Office

15 Lang Parade, Milton
Family-owned FKG Group paid $4.44 million for a two-storey office building in Brisbane’s inner west to accommodate its subsidiary GFG Projects. The acquisition includes a three-year leaseback on the upper floor, offering short-term income and long-term strategic utility for the firm.

38 Southgate Avenue, Cannon Hill
Natgen Investment Trust SG25 secured this three-level office property for $22 million as part of a broader fund strategy targeting 8.3% annual returns. The deal reflects confidence in Brisbane's suburban office market, underpinned by improved leasing conditions and limited new supply in well-connected areas.

Green Square South Tower, Fortitude Valley
Sentinel Property Group acquired the 18,000 sqm A-grade office tower for more than $100 million—the largest fringe office sale since 2022. This off-market deal confirms the return of counter-cyclical capital to Brisbane’s office sector, driven by confidence in long-term infrastructure and Olympic-led growth.

Industrial & Logistics

Gateway Capital QLD Portfolio
Four assets were offloaded as part of Gateway Capital’s $135 million Eastern Seaboard divestment strategy:

• • 227–247 Fleming Rd, Hemmant: Sold for $46.6m to Irongate.

  • 163 Ingrams Rd, Acacia Ridge: $28.53m

  • 149–157 Jackson Rd, Acacia Ridge: $17m

  • 189 Ingrams Rd, Acacia Ridge: $17m
    These properties offer over 50,000 sqm of GLA across 14.6 hectares, with strong interest from private capital and owner-occupiers.

Pine Ridge Mechanical, Gold Coast
A 610 sqm freehold industrial asset was acquired for $1.725 million, reflecting a sharp 4.52% yield. Located opposite Norco Foods, the compact site attracted nine offers, proving high demand for sub-$2 million industrial stock.

Flagstone Stage 7H, Logan
A local developer secured the final 5,231 sqm parcel for $1.78 million, confirming sustained demand for commercial land in growth corridors. Notable occupiers in the area include Lifeline and World Gym.

Retail

Hollywood Plaza, Helensvale
Two Brisbane-based investors acquired this neighbourhood shopping centre for $6.4 million, achieving a 6% yield. Anchored by tenants like Sushi Train, H&R Block and a gym, the 1,128 sqm building sits on a 3,485 sqm site and is adjacent to the M1.

Clifton Village, Cairns (Far North QLD)
Fawkner Property Group paid $34 million for this 7,811 sqm shopping centre, which includes a refurbished Coles, Liquorland, The Reject Shop, and healthcare tenants. The asset drew nine offers, driven by investor appetite for well-located, inflation-resistant retail.

Childcare

The Kingaroy Childcare Centre, 261 Haly St
Sold for $4.5 million with a new 15-year lease through 2038, the purpose-built centre generates a 7.7% net yield. It sits on a 4,047 sqm site surrounded by five schools, with future plans to expand capacity from 74 to 91 places.

Development & Landbanking

32 Brookes St and 35 Jeays St, Bowen Hills
A local owner of adjacent sites consolidated his holdings with a $4.7 million acquisition of these two flood-free properties, creating a 1,300 sqm amalgamated parcel in the RNA/Olympic precinct. The move positions the buyer for future high-density mixed-use development.

General News

Construction Disruption Worsens

According to The Australian, average home construction times have ballooned 50% over the past year, now taking 12.7 months versus 8.5 in 2014. Material costs have surged by over 50% nationally, with Queensland recording a 58% increase over the past decade. These delays further strain the National Housing Accord's 1.2 million-home goal, which is already 55,300 homes behind schedule in its first year.

Labour Shortages Pressure Commercial Buildouts

As reported by the Australian Financial Review, Queensland’s looming Olympic infrastructure boom will intensify the state’s construction worker shortfall. Already requiring 18,500 more workers to meet its housing targets, the state faces mounting labour and material constraints that may slow commercial refurbishments, shopfitting, and capital works. Builders are urged to accelerate projects before the 2028–2032 peak activity window.

Union Strikes Impact Project Timelines

CFMEU-led strikes disrupted major sites in Brisbane and the Gold Coast last week, resulting in site shutdowns and cost overruns. The strikes, deemed unauthorised by the union’s administration, have caused delays across sectors, with subcontractors bearing financial burdens due to forced stoppages.

In short, for commercial landlords, these construction and labour headwinds signal higher costs and longer timelines for upgrades, refurbishments, and tenant fit-outs. With material prices surging and skilled labour increasingly scarce—particularly as Queensland ramps up Olympic-related infrastructure—routine capital works may face significant delays. Union-led strikes further compound the risk, disrupting active sites and increasing holding costs. Landlords planning repositioning, value-add works, or new builds may need to lock in trades early, adjust project budgets upward, and manage tenant expectations more carefully in the years ahead.

References

• Herde, C. (2025, July 3). FKG locks in property. The Courier-Mail, p. 65.

• Herde, C. (2025, July 3). Gateway sells off four QLD assets. The Courier-Mail, p. 65.

• Herde, C. (2025, July 3). Adjoining sites attract Bowen Hills neighbour. The Courier-Mail, p. 66.

• Herde, C. (2025, July 3). Quality shopping centre lures Brisbane investors. The Courier-Mail, p. 67.

• Carruthers, P. (2025, July 3). Group splurges on shops. The Cairns Post, p. 13.

• Pett, S. (2025, July 3). Fringe appeal. Financial Review.

• Wang, J. (2025, July 3). Build times go through the roof. The Australian, p. 7.

• Marin-Guzman, D. (2025, June 23). Builders brace for more strikes. Financial Review.

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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