Week Ending 7 August 2026
Queensland commercial real estate continues to display resilience as institutional capital and private developers lock in strategic holdings across South East Queensland. Federal policy shifts aim to lower energy costs for industrial property owners by offering a 20 per cent discount on large rooftop solar installations (Cropp & Macdonald-Smith, 2026). Meanwhile, significant legislative overhauls to the capital gains tax regime are driving commercial and residential property investors toward formal asset valuations to protect accumulated equity before indexation rules take effect (Tamblyn, 2026). Softening sales across discretionary fashion retail highlight broader economic pressures, yet core investor demand for premier central business district office towers, well-located industrial assets, and prime development land remains firm (Greenblat, 2026; Wilmot, 2026a; Wilmot, 2026b).
This week highlights
| Property Address / Name | Sector | Transaction Type | Sale Price | Key Deal Details |
|---|---|---|---|---|
| 480 Queen Street, Brisbane CBD | Office | Sale | $700,000,000 | Dexus offloaded the 31-level A-grade tower to Barings; net value of $657.3 million. |
| 273 Water Street, Fortitude Valley | Office | Sale | $1,850,000 | Private consortium acquired a freestanding 2-level office (179 sqm NLA) in an off-market deal. |
| 3 Tarcoola Avenue, Mooloolaba | Retail | Sale | $8,850,000 | RM Capital acquired the Mooloolaba Junction retail centre (3,892 sqm site) to reposition tenancies. |
| City West Site, Sinnathamby Boulevard, Springfield City | Mixed Use | Sale | $50,000,000 | Gordon Corp purchased a 12 ha town centre lot for a masterplanned precinct and retail hub. |
| 2589 Kortum Drive, Burleigh Heads | Mixed Use | Sale | $9,400,000 | B.P. Wharton purchased a 2,589 sqm site for demolition and redevelopment into a 3-storey complex. |
| 39 Russell Street, South Brisbane | Residential | Sale | $14,000,000 | Skyhold acquired a 931 sqm corner site with a 30-level height allowance under the Kurilpa TLPI. |
| 59-63 Kinsellas Road West, Mango Hill | Residential | Sale | Undisclosed | Chapter Two acquired two sites from the Buchanan family to deliver approximately 56 residential lots. |
| 58 Spine Street, Sumner | Industrial | Sale | $5,200,000 | Owner-occupier purchased a 1,344 sqm NLA industrial building on a 2,068 sqm site at a suburb record rate. |
Office - 480 Queen Street, Brisbane CBD
Dexus and Dexus Wholesale Property Fund have finalised the largest single office transaction in Brisbane history, offloading the 31-level A-grade tower at 480 Queen Street, Brisbane CBD to global fund manager Barings for $700 million (Wilmot, 2026a). The 56,800 square metre asset was sold at a net value of $657.3 million as Dexus actively reshapes its portfolio to reduce office exposure and pivot into logistics and infrastructure funds (Wilmot, 2026a).
Office - 273 Water Street, Fortitude Valley
A private consortium has acquired a rare freestanding, two-level office building at 273 Water Street, Fortitude Valley for $1.85 million in an off-market deal (Potts, 2026). The refurbished property sits on a 227 square metre site with 179 square metres of net lettable area, achieving a high rate of $10,335 per square metre of net lettable area (Potts, 2026).
Retail - 3 Tarcoola Avenue, Mooloolaba
Investment firm RM Capital has acquired the Mooloolaba Junction retail centre at 3 Tarcoola Avenue, Mooloolaba for $8.85 million in an off-market transaction (Sunshine Coast News, 2026). The 3,892 square metre site holds a three-street frontage located 450 metres from the beachfront strip, with the buyer launching a targeted upgrade program to reposition vacant tenancies and restore the complex into a thriving neighbourhood hub (Sunshine Coast News, 2026).
Mixed Use - City West Site, Sinnathamby Boulevard, Springfield City
Springfield City Group has completed the $50 million sale of a prime 12-hectare town centre super lot on Sinnathamby Boulevard, Springfield City to private developer Gordon Corp (Wilmot, 2026b). The buyer plans to masterplan a comprehensive mixed-use precinct comprising residential, commercial, and leisure spaces, starting with a 10,581 square metre retail hub anchored by a Coles supermarket (Wilmot, 2026b).
Mixed Use - 2589 Kortum Drive, Burleigh Heads
Gold Coast developer B.P. Wharton has unveiled plans for a three-storey office and commercial complex on a 2,589 square metre site at 2589 Kortum Drive, Burleigh Heads (Potts, 2026). The developer purchased the former self-storage property for $9.4 million and intends to demolish the existing structures to create a vibrant mixed-use development featuring at least 22 tenancies, showrooms, offices, and a central courtyard cafe (Potts, 2026).
Residential - 39 Russell Street, South Brisbane
Local developer Skyhold has acquired a prime 931 square metre development site at 39 Russell Street, South Brisbane for $14 million following an off-market competitive process (Herde, 2026a). The corner property features a 30-level height allowance under the Kurilpa temporary local planning instrument and achieved a land rate of $15,037 per square metre due to its protected park views and inner-city position (Herde, 2026a).
Residential - 59-63 Kinsellas Road West, Mango Hill
Brisbane developer Chapter Two has expanded its presence in the Moreton Bay region by purchasing two neighbouring sites at 59-63 Kinsellas Road West, Mango Hill from the Buchanan family (Herde, 2026b). The acquisition will facilitate the delivery of approximately 56 residential lots, lifting the total project value for Chapter Two in the 4509 postcode to $200 million (Herde, 2026b).
Industrial - 58 Spine Street, Sumner
A two-level industrial building at 58 Spine Street, Sumner has changed hands for $5.2 million following an off-market sale to an owner-occupier investor (The Courier-Mail, 2026). The 2,068 square metre site holds 1,344 square metres of net lettable area and achieved a suburb-record building rate of $3,869 per square metre (The Courier-Mail, 2026).
General News
Major capital gains tax restructuring from 01/07/2027
It will abolish the standard 50 per cent discount, transitioning property taxation to an inflation-indexed cost base model. Property investors are strongly advised to secure independent, professional market valuations around July 2027 to establish a clear cost base and avoid overpaying tax on pre-2027 capital growth The Australian Taxation Office is deploying advanced analytics, artificial intelligence, and extensive property databases to crosscheck valuation figures and flag inflated cost bases (Tamblyn, 2026).
- Financial Impact: Replacing the standard 50 per cent CGT discount with an inflation-indexed cost base model increases tax complexity and potential tax obligations upon asset disposal. Capital gains accumulated prior to 1 July 2027 will retain the existing discount structure, making the transition value a critical dividing line for tax liability.
- Valuation Risk: With the Australian Taxation Office (ATO) deploying artificial intelligence and cross-referencing databases, reliance on unverified, outdated, or inflated internal appraisals creates significant audit and financial penalty risk
Expansion of the Small-Scale Renewable
The Australian Government is expanding the Small-Scale Renewable Energy Scheme to include commercial rooftop solar systems up to 1 megawatt, cutting installation costs by roughly 20 per cent for factory and warehouse owners. An 850-kilowatt commercial solar system installation under the revised energy rules is projected to save businesses up to $232,000 in upfront capital costs while supplying clean electricity to operational facilities (Cropp & Macdonald-Smith, 2026).
- Cost Reduction: Extending SRES coverage to commercial systems up to 1 megawatt lowers upfront installation costs by approximately 20 per cent. This makes mid-scale rooftop solar financially viable for large-roof assets such as industrial warehouses, logistics hubs, and manufacturing facilities.
- Asset Yield and Valuation: Lowering tenant electricity costs increases net operating income (NOI), strengthens tenant retention, and improves property sustainability ratings (such as NABERS), directly enhancing asset capitalisation rates and capital values.
Apparel and fashion retail sales have slowed sharply across Australia as higher interest rates and rising living costs reduce consumer discretionary spending (Greenblat, 2026)
- Leasing Risk: Soaring living costs and interest rates continue to suppress consumer discretionary spending, increasing vacancy risk and payment default exposure for apparel and fashion tenants.
- Income Stagnation: Shopping centres and retail strips heavily dependent on discretionary spending face downward pressure on rental growth and longer re-leasing periods.
Final Take
While consumer pullbacks create short-term hurdles for discretionary retail tenants, long-term capital flows into South East Queensland real estate remain exceptionally robust. Substantial government support for industrial rooftop solar, paired with aggressive land acquisitions in key growth corridors and proactive tax valuation strategies, shows that commercial owners and investors are actively preparing for sustained future expansion.
References
Cropp, R., & Macdonald-Smith, A. (2026, August 4). Bowen taps factory rooftops to power renewables rollout. The Australian Financial Review. https://www.afr.com/policy/energy-and-climate/bowen-taps-factory-rooftops-to-power-renewables-rollout-20260804-p60lam
Greenblat, E. (2026, July 31). Rocky road awaits for retail. The Courier-Mail.
Herde, C. (2026a, July 31). Height and position sets site up for sale. The Courier-Mail.
Herde, C. (2026b, July 31). Site now ready for next Chapter. The Courier-Mail.
Potts, A. (2026, July 31). From sheds to sanctuary. The Courier-Mail.
Sunshine Coast News. (2026, July 17). Sunshine Coast developer acquires prime retail site near beachfront. Sunshine Coast News.
Tamblyn, S. (2026, August 4). How to protect your property gains from the CGT overhaul. The Australian Financial Review. https://www.afr.com/wealth/personal-finance/how-to-protect-your-property-gains-from-the-cgt-overhaul-20260722-p60hgr
The Courier-Mail. (2026, July 31). Industrial sale at 58 Spine Street, Sumner. The Courier-Mail.
Wilmot, B. (2026a, July 31). Office tower megasale. The Courier-Mail.
Wilmot, B. (2026b, July 31). Springfield’s $50m boost. The Courier-Mail.
For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane
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