This week, Queensland's commercial property market has seen significant activity across the industrial and office sectors. Notable transactions include the sale of key industrial properties in Slacks Creek, Caloundra West, and Karrabin, reflecting continued investor confidence in high-demand locations. In the office sector, a prominent property in Booval has changed hands, highlighting the appeal of well-located business premises with expansion potential. These sales underline the ongoing strength and resilience of Queensland’s commercial real estate market, with both owner-occupiers and investors looking to capitalise on strategic opportunities.
Commercial Summary in Queensland This Week
Industrial
· 7 Dan Street
o Location: Slacks Creek, QLD
o Details: Sold for $2.1 million
o A 2,757 square metre industrial development site has been sold for the first time in nearly 30 years. It is one of the last remaining vacant commercial sites in the suburb and is surrounded by warehouses.
· 34 and 21 Enterprise Street
o Location: Caloundra West, QLD
o Details: Sold for over $9 million combined
o Plastec Australia has secured two industrial warehouses in separate transactions as part of its expansion strategy. The properties at 34 Enterprise Street sold for $5.9 million, while 21 Enterprise Street sold for $3.41 million. The acquisitions provide a combined building area of 3,541 square metres, aimed at enhancing production capabilities and supporting business growth.
· 1662-1670 Warrego Highway
o Location: Karrabin, QLD 4306
o Details: Sold for $2,360,000
o A high-exposure industrial site with truck sales approval. The 2.01-hectare property includes an air-conditioned sales office, kitchen, storage room, toilet, hardstand areas, flood lighting, and dual access. It is fully fenced with a monitored security system and offers easy access to Brisbane Valley Highway and Ipswich City Interchanges.
Office
· 107 Brisbane Road
o Location: Booval, QLD 4304
o Details: Sold for $912,000
o A two-storey Queenslander-style property on 878 square metres of land. The property includes a fully outfitted office space with disabled access and kitchenette on the ground floor, while the upper level offers potential for further expansion. The site features multiple car parks, landscaped gardens, and direct main road frontage in the heart of Booval's business hub.
The recent commercial property transactions across Queensland reflect a market that continues to attract both investors and businesses seeking strategic opportunities. With strong demand for industrial properties and steady interest in well-located office spaces, the sector remains resilient despite broader economic uncertainties. These trends provide valuable insights into the evolving investment landscape as we move into 2025. Looking ahead, the anticipated decline in interest rates is expected to have a significant impact on investor sentiment and market dynamics.
As we explore the key insights into the 2025 investment property market, it is clear that changes in financing conditions, rental yields, and economic policies will play a crucial role in shaping investment decisions in the coming year.
Key Insights into the 2025 Investment Property Market
According to Holgate, E. (2025), as interest rates are expected to decline in 2025, the property market may witness a resurgence in investor participation. Industry experts have shared their perspectives on what to anticipate in the coming year:
1. Interest Rate Reductions May Stimulate the Market
The Reserve Bank of Australia (RBA) is projected to implement interest rate cuts as early as February, with additional reductions expected later in the year. According to Nerida Conisbee, Chief Economist at Ray White, the lending environment is likely to improve, although market fluctuations could influence the exact timing of these cuts (Smart Property Investment)
2. Challenges in Investor Financing
Until interest rates begin to ease, securing financing may remain difficult for investors. Eliza Owen, Head of Research at CoreLogic, suggests that the slowdown in property value growth may discourage investor activity, especially in the early months of 2025. Investor demand typically aligns with capital growth trends, which have recently shown signs of decline (Future Assist)
3. Changes in Rental Yields and Demand
The rental market in major cities like Sydney and Melbourne is experiencing a shift, with increasing interest in shared housing over smaller apartments due to rising living costs. Owen notes that this trend could lead to softer rental returns. Conisbee adds that the slowing pace of rental growth might pose difficulties for investors, particularly in the first quarter of the year.
In Brisbane, the rental market is experiencing significant shifts influenced by various factors. The city is facing a rental crisis characterized by historically low vacancy rates and escalating rents. This trend is driven by strong demand for detached houses, particularly in inner and middle-ring suburbs, leading to these locations outperforming more affordable properties in outer suburbs. Conversely, demand for apartments remains softer, with a growing preference among Queenslanders for townhouses in inner suburbs as a preferred style of accommodation (Property Update)
Despite the tight rental market, recent data indicates a deceleration in rental price growth. According to CoreLogic's latest Quarterly Rental Review, the national rental market has shown signs of cooling, with rent values rising by just 0.4% in the December quarter—the smallest fourth-quarter increase since 2018. This trend suggests that while rents remain high, the pace of growth is slowing, potentially offering some relief to renters (Australian Broker)
4. Market Recovery Expected in the Latter Half of 2025
Despite a cautious start to the year, investor confidence is predicted to rebound in the second half. Antony Bucello, Director at National Property Buyers, has observed growing interest from investors, particularly in cities such as Adelaide and Brisbane. Meanwhile, Melbourne, with its current market downturn and ongoing infrastructure projects, may present new opportunities for growth.
5. Importance of Strategic Research
Investors are recommended to conduct thorough research when considering property investments. Owen highlights that regional areas, particularly Townsville in Queensland and parts of Western Australia, have shown strong growth potential, driven by affordability and sound economic conditions.
6. Retail Property Set to Shine
The commercial property sector is undergoing a shift, with retail assets gaining prominence over industrial properties. Vanessa Rader, Head of Research at Ray White, points to the increasing attractiveness of retail spaces due to population growth and the evolution of shopping centres into lifestyle destinations. This trend is reflected in a significant rise in commercial retail transactions.
Further supporting this trend, a recent development application for the Aura town centre on the Sunshine Coast outlines plans for a substantial retail and commercial hub. Stage one of this project includes 14,800 square metres of retail space, featuring supermarkets, specialty retail, dining, entertainment, and healthcare services. This initiative underscores the ongoing investment in retail infrastructure to cater to growing communities (Courier Mail)
7. External Influences on the Market
Political developments, such as the potential re-election of Donald Trump in the United States, could have global economic implications, including inflationary pressures that may influence Australian interest rates. Additionally, Australia’s 2025 federal election could introduce further policy changes affecting the property sector.
Reference:
Holgate, E. (2025). Insights into the 2025 property investment market. Rural Press Pty Ltd Australian Community Media.
While sectors such as retail are experiencing renewed growth due to evolving consumer preferences and strategic investments, other property owners face hurdles in managing tenant relationships and supporting property conditions. One such example is the recent legal dispute on the Gold Coast, where property owners successfully defended themselves against claims related to maintenance issues. This case highlights the complexities involved in commercial property leasing and the importance of proactive property management and legal diligence.
Gold Coast Business Partners Triumph in Legal Dispute Over Leaky Roof
Gold Coast dentist Andrew Firgaira and his Brisbane-based business partner Alex Polites have successfully won a legal case about a leaking roof in a commercial property dispute. On December 19, the Queensland Civil and Administrative Tribunal (QCAT) ruled in their favour, awarding them $85,887 in damages and legal costs.
The case involved Brendan Angus, a tenant who leased the former Kentucky Fried Chicken premises in Coolangatta to run his Sunhouse Surf Kiosk business. He claimed that persistent water leaks made the building unsuitable for operation and sought $750,000 in compensation for business disruptions.
However, QCAT dismissed his claim, concluding that the business faced financial struggles from the outset and that the building’s condition was not the primary reason for its failure. Despite Mr Angus providing videos showing the roof leaks, the tribunal decided that the property owners had made reasonable efforts to address the issue.
Evidence presented showed that Mr Polites arranged for roof repairs during the lease period, and the tribunal confirmed the lease was legally terminated after Mr Angus stopped paying rent. The tribunal found that while occasional leaks may have caused disruptions, they were not the primary factor leading to the business's closure.
Dr Firgaira, the owner of several Oasis Dental clinics across the Gold Coast, and Mr Polites, a property developer from a prominent family, were satisfied with the tribunal’s decision.
Reference:
Carson, V. (2025, January 17). Gold Coast business partners triumph in leaky roof case. The Gold Coast Bulletin.
For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane
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