Queensland Commercial Property Market Update – 30th May 2025
Regional Queensland Draws Families Fleeing Sydney and Melbourne
Retail
Harry Potter-Themed Cafe Sold in Samford Village
The Owlery, a popular Harry Potter-themed cafe in Samford Village, has been sold to an interstate investor for $1.95 million. The property attracted over 100 enquiries and multiple offers, selling on a 6.6% yield with a secure five-year lease. The sale reflects continued demand for well-tenanted retail assets under $2 million in Queensland.
Development
Gold Coast Ice Rink Site Set for $10.5m Redevelopment
The former Iceland ice rink site on Strathaird Road, Bundall, will undergo a $10.5 million transformation into a self-storage and warehouse complex. Developer John Potter plans two two-storey buildings with 21 warehouse units, including 10 self-storage spaces, and a three-bedroom caretaker's unit. The project follows the closure of the iconic rink in January after nearly 30 years.
Failed South Brisbane Apartment Project Hits the Market
The stalled 35 Merivale project in South Brisbane, previously backed by Tallis Property Group, has been listed for sale by receivers FTI Consulting. The 1,820 sqm site is approved for a 30-storey residential tower with 184 apartments and ground-floor retail, with a four-level basement and podium car park already completed. The project, initially named Akin, was planned as a $180 million luxury tower but entered receivership in December 2023 after builder Descon Group collapsed. Colliers’ Brendan Hogan and Troy Linnane are running the expressions of interest campaign, closing July 9.
Office
Dymocks Selling Brisbane CBD Office Building
Dymocks Properties plans to sell George Street Chambers, a 13-storey, 6,285 sqm office building in Brisbane’s legal precinct. Bought for $42.1 million in 2019, the property is expected to fetch around $50 million. This sale is part of a broader wave of office repositioning across Brisbane.
Mapletree Lists $550m Australian Office Portfolio
Singapore’s Mapletree is offloading four office assets worth a combined $550 million, including 144 Montague Road in Brisbane. The assets, spread across Brisbane, Sydney, Melbourne, and Adelaide, were acquired between 2014 and 2017 and are expected to attract strong interest from both private and institutional buyers.
Industrial/Warehouse
Centuria Sells $60m in Queensland Warehouses, Olympics Demand a Key Driver
Centuria Capital has sold three southeast Queensland warehouses for a total of $60 million, capitalising on strong demand fuelled by the 2032 Olympics. Assets in Stapylton, Salisbury, and Heathwood were sold at significant premiums. The group continues to manage over $6.2 billion in industrial assets across Australia and New Zealand.
General News
Queensland Industrial Property Shifts as Taxes Deter Foreign Buyers
Higher property taxes in Queensland and Victoria are pushing offshore investors out of the industrial market, creating buying opportunities for locals. Funds like Richmond Bridge are raising capital to acquire discounted assets, capitalising on reduced foreign competition.
Energy Bills Set to Rise
Queenslanders on default electricity plans face price hikes of up to 3.7%, while NSW customers could see increases as high as 9.7%. Energy Minister Chris Bowen advises shopping around for better deals, as up to 27% savings may be possible.
Regional Queensland Draws Families Fleeing Sydney and Melbourne
Regional Queensland is booming, with 2.48 families arriving for every one leaving. Popular destinations include the Sunshine Coast, Wide Bay, and Cairns, where affordability and lifestyle attract families seeking space and a better quality of life.
Affordability is a key factor driving the shift. The average house price in regional Queensland sits around $550,000—up to 40% cheaper than Brisbane and significantly more affordable than Sydney, where median house prices hover around $1.3 million. Families are finding they can sell a Sydney home, downsize their mortgage, and upgrade to a larger property in regional Queensland, often with a backyard and space for the kids.
It's not just price; lifestyle plays a huge role. Regional Queensland offers beaches, bushland, and a slower pace of life, while still providing access to jobs, schools, and healthcare. Remote working has made this move more realistic, allowing families to leave the congestion of the major cities behind without sacrificing career opportunities.
Research also shows that one in four families leaving Greater Brisbane are moving to regional Queensland, chasing affordability, space, and a better quality of life. The Sunshine Coast alone is seeing 3.28 families arriving for every one that leaves.
With continued infrastructure investment, population growth, and attractive entry points into the property market, regional Queensland is shaping up as the destination of choice for Australian families looking to build a new life away from the capital city squeeze.
This population growth is having a direct impact on the commercial property market. As more families settle in regional areas, demand for essential services is rising—fueling growth in retail, childcare centres, medical facilities, and neighbourhood shopping centres. Investors are increasingly targeting these assets, recognising the long-term rental security they offer in growing communities.
Industrial properties, such as logistics hubs and warehouses, are also benefiting as businesses expand to support growing populations and supply chain demands. New housing estates drive the need for building supplies, hardware stores, and tradie hubs, while hospitality venues like cafes, restaurants, and entertainment facilities follow the wave of new residents.
Brisbane 2032 Olympics: Delays and Construction Costs a Concern
Brisbane 2032 boss Andrew Liveris has raised concerns about surging construction costs, worker shortages, and industry constraints that could impact the delivery of major Olympic infrastructure. With projects like the $3.79 billion, 63,000-seat stadium at Victoria Park and a raft of other venues piling pressure on an already stretched building sector, Liveris says solving these issues is crucial for the Games and Queensland’s broader infrastructure pipeline.
Queensland’s new government has moved quickly, introducing planning laws to fast-track approvals and scrapping controversial industrial relations policies. Deputy Premier Jarrod Bleijie is pushing to streamline processes and address workforce gaps, including securing skilled migrant labour.
Despite past delays under the former Labor government, Liveris is optimistic, saying the new plan finally provides the certainty needed to move forward. However, concerns remain—particularly over a forecast shortfall of 30,000 hotel rooms by 2032, with high-rise accommodation projects urgently needed to ensure Brisbane is ready for the influx of visitors.
As the Games draw closer, the organising committee’s focus is shifting to deciding which sports will be featured, with netball and surf lifesaving in the mix. A final decision on the sporting disciplines is expected in 2026.
Overall, Queensland’s commercial property sector is well-placed to capitalise on ongoing population shifts, infrastructure investment, and sustained demand for quality assets across all major sectors. Looking ahead, a focus on regional growth, adaptive reuse, and market fundamentals will be key to maximising opportunities in this evolving landscape.
References
Herde, C. (2025, May 29). Cafe and more sold in a magical deal. The Courier-Mail, p. 54.
Potts, A. (2025, May 29). Warehouse overhaul. The Gold Coast Bulletin, p. 37.
Mapletree cashes in on office comeback. (2025, May 29). The Australian, p. 20.
Energy bills to rise by up to 9.7% as Australian regulators approve price increases. (2025, May 29). The Guardian Australia, p. 7.
Why Aussie families are fleeing Sydney, Melbourne. (2025, May 29). Sunshine Coast Daily, p. 27.
For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane
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