Week Ending 31 July 2026

The Queensland commercial property market remains active with retail assets continuing to attract strong investor. Recent data reveals that retail property has emerged as the clear market outperformer, accounting for 42% of the total 31.3 billion dollars in commercial transactions over the last financial year (Carbone, 2026).

The Reserve Bank of Australia remains focused on controlling inflation and has indicated it will not intervene to support property values. Following recent interest rate increases, investors are placing greater emphasis on secure assets with reliable income and strong underlying land value.

As a result, neighbourhood shopping centres, medical facilities and development sites are attracting significant private capital.

This week highlights

Mixed Use - 4-6 Strathaird Road and 85-87 Ashmore Road, Bundall

A former large-format retail centre on the Gold Coast has sold for $13.6 million and will be transformed into a mixed-use commercial hub.

Property Details:

• 6,072 sqm dual-street landholding
• Future commercial, medical and retail uses
• Panoramic coastal views

The redevelopment will convert the existing bulky-goods centre into a modern lifestyle and business precinct (Herde, 2026b).

Residential Development - 75-85 Cleveland Street, Stones Corner

Brisbane development-ready apartment sites continue to attract strong demand from builder-developers with in-house construction capability (Herde, 2026a).

• Sale price: $23.16 million
• Site area: 3,846 sqm
• Approved for two 12-storey apartment towers
• Total of 226 residential units

The transaction reflects a land rate of approximately $6,022 per sqm (Herde, 2026a).

Retail - Winston Glades Shopping Centre, 259 Ash Street, Flinders View

Neighbourhood shopping centres continue to attract investor interest due to their defensive income profile (Unknown, 2026).

• Sale price: approximately $23 million
• Site area: 2.6 hectares
• Occupancy: 99%
• Annual passing net income: $1,826,460

The sale demonstrates ongoing demand for retail assets within growing residential catchments (Courier Mail, 2026).

Retail - Greenbank Village, 2-8 Sheppards Drive, Greenbank

Investor competition remains strong for convenience centres anchored by essential-service tenants (Herde, 2026c).

• Sale price: $8.35 million
• Single ownership for 35 years
• 2,268 sqm centre
• Yield achieved: 6.71%

The property is anchored by a local grocer and service station, supporting stable customer traffic and income

Commercial - Scott Street, East Toowoomba

Construction has commenced on a new specialist medical facility in East Toowoomba valued at more than $2.5 million (Gillespie, 2026).

• Four specialist medical tenancies
• 188 sqm suites
• 32 on-site car parks
• Located near a major private hospital

The project is expected to meet growing healthcare demand across the regional market (Gillespie, 2026).

General News

• Retail property has overtaken all other commercial sectors in Australia, accumulating 13 billion dollars in transactions to capture nearly half of the entire commercial market share.This level of activity highlights the strong investor confidence in retail assets, particularly neighbourhood shopping centres and convenience-based retail. Many investors view these assets as defensive investments due to their ability to generate stable rental income during periods of economic uncertainty. The trend may place upward pressure on asset values and yields as competition for quality retail properties continues to increase.
• Private capital has become the dominant force in retail property acquisitions, contributing 4.3 billion dollars and frequently outbidding institutional syndicates on premium assets.This shift demonstrates the growing influence of high-net-worth investors, family offices and private investment groups within the commercial property market. Increased competition from private buyers may reduce acquisition opportunities for institutional investors while supporting stronger pricing outcomes for property owners. For vendors, this broader buyer pool may create more favourable sale conditions and shorter transaction periods.
• Large-scale retail assets are experiencing a massive surge in scale, with 29 national deals exceeding 100 million dollars and pushing the average transaction size up by 66%. The increase in transaction size suggests investors remain willing to commit substantial capital to high-quality retail assets despite broader economic uncertainty. Large institutional-grade properties continue to be viewed as long-term income-producing investments with strong tenant covenants. This trend may encourage owners of major retail assets to consider divestment strategies while market demand remains elevated.
• Brisbane residential apartment sites are increasingly being acquired exclusively by builder-developers who possess internal construction arms to bypass ongoing industry delivery challenges.
• Mortgage applications have plunged by 15% over the last quarter, driven by the combined economic pressures of higher interest rates, property tax changes, and rising fuel costs.
• Official headline inflation has reached 3.8%, prompting the central bank to prioritise labour market stability and inflation targets over declining housing indicators. Higher inflation and the prospect of interest rates remaining elevated for longer could continue to place pressure on borrowing capacity and investment returns. At the same time, many commercial leases include fixed annual increases or CPI-linked rent reviews, allowing landlords to partially offset inflationary impacts. As a result, well-leased commercial assets may continue to appeal to investors seeking income growth and inflation protection.

Final Take

The South East Queensland commercial property market is showing an increasing divide between residential lending activity and commercial investment demand.

Higher interest rates continue to weigh on residential borrowing, while investors remain active in retail centres, medical facilities and strategic development sites (Carbone, 2026; Herde, 2026d).

Assets that provide secure income, strong occupancy and exposure to essential services continue to attract the greatest level of investor interest 

References

Carbone, J. (2026, July 30). Shopping centre investment surges as sector leads commercial property. *Real Commercial*.

Gillespie, T. (2026, July 30). Building under way on site: New medical precinct. *The Chronicle*.

Herde, C. (2026a, July 24). Stones Corner score. *The Courier-Mail*.

Herde, C. (2026b, July 24). Transforming Bundall. *The Courier-Mail*.

Herde, C. (2026c, July 24). Spacious convenience in a high-traffic location. *The Courier-Mail*.

Herde, C. (2026d, July 24). NAB reveals huge plunge in mortgages as central bank rejects property rescue. *The Courier-Mail*.

Courier Mail. (2026, July 24). Winston Glades Shopping Centre transaction article. *The Courier-Mail*.

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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