QLD Commercial Property Weekly Wrap-Up: Week Ending 19 September 2025

Market Overview

• Owner-occupiers continue to dominate smaller inner-city transactions, particularly under approximately $5m, driven by desire for long tenure and security.
• Investment demand remains strong for income-producing fully-leased assets (childcare, retail, mixed-use), and retail hubs in growth corridors.
• The Land Lease Community (LLC) sector is gaining traction, particularly in growth corridors and for the Over-55 / Downsizer demographics.
• Recent legal reforms (Property Law Act 2023) are in force as of 1 August 2025, bringing in mandatory seller disclosure, new protocols for assignment/sublease etc., affecting all commercial Lease and sale transactions in QLD.

This Week’s Highlights

General News & Policy

• Property Law Act 2023 (Qld): Commenced 1 August 2025. Key changes include a mandatory seller’s disclosure regime for both residential and commercial property transactions. Sellers must provide a disclosure statement & prescribed certificates before a contract is signed.
• Under the new law, landlords must observe changes regarding assignment or sublease requests from tenants; timelines and reasonableness provisions override certain existing Lease terms.
• Market Sentiment: According to discussions at the AFR Property Summit, commercial markets are at the early upswing stage, but supply constraints and limited new builds could pose inflationary risks and widen economic inequality.
  

  At the recent AFR Property Summit, experts and industry leaders expressed cautious optimism about the state of Australia's commercial property market, including Queensland. After several years of rising interest rates and reduced investment activity, there is a growing belief that the market has reached the bottom and is now entering an early stage of recovery. This recovery is being supported by continued demand for commercial assets such as industrial facilities, office buildings, and retail centres, alongside a notable shortage of new developments.

  This supply shortage is currently benefiting existing landlords, as reduced availability leads to higher rental income and asset valuations. However, this situation presents long-term risks. With limited new supply, competition for available space increases, which can push rents higher and make it more difficult for small and medium businesses to afford premises. These rising costs may feed into inflation and increase economic inequality between property owners and tenants.

  One of the main reasons for the supply shortage is constrained construction capacity, particularly in Queensland. Builders are struggling to commence new projects due to a lack of skilled labour, higher construction costs, and limited availability of materials. These challenges are worsened by major infrastructure and public projects, including preparations for the 2032 Brisbane Olympics, which are absorbing much of the available construction workforce and resources. As a result, fewer commercial developments are progressing, and this continues to limit supply in the near term.

  In summary, while investor confidence is beginning to return, supply constraints and construction bottlenecks are placing upward pressure on rents and asset values. This may benefit current owners but could also pose challenges for tenants and contribute to broader inflation and inequality across the property market.

Final Take

• Owner-occupiers in QLD are driving sub-$5m inner-city sales due to long-term certainty and limited leasing options.
• Land Lease and downsizer communities are an emerging housing solution in growth corridors.
• Fully-leased income assets remain highly attractive, especially in sectors like childcare and service retail.
• The new Property Law Act mandates compliance with seller disclosure and Lease procedures; awareness and legal due diligence are essential.
• Large-scale projects in the pipeline (e.g. hotel in Spring Hill) highlight the infrastructure demands building toward the 2032 Olympics.

References

• Herde, C. (2025, September 17). Downsize and thrive. The Courier-Mail, p. 63.
• Herde, C. (2025, September 17). Lifestyle hub near capacity. The Courier-Mail, p. 63.
• Herde, C. (2025, September 17). Buying in for certainty. The Courier-Mail, p. 65.
• Herde, C. (2025, September 17). Personal bond fuels Bundall retail centre’s milestone sale. The Courier-Mail, p. 65.
• Herde, C. (2025, September 17). Dealer shifts gears to premium model. The Courier-Mail, p. 66.
• Herde, C. (2025, September 17). Child’s play: investor snaps up solid Sunshine Coast centre. The Courier-Mail, p. 66.
• O’Malley, B. (2025, September 17). New hotel proposed for Spring Hill site. The Courier-Mail, p. 10.
• Thomson, J. (2025, September 16). The next property crisis is coming. And it’s not just about housing. Australian Financial Review (Online). Fairfax Media Publications Pty Limited.
• Queensland Government. (2023). Property Law Act 2023 (Qld). Retrieved from Property Law Act 2023

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

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