Week Ending 23rd January 2026

The Queensland commercial property market has entered 2026 with a resilient performance, underpinned by strong population growth and a tightening supply of prime assets (Herde, 2026a; Herde, 2026b). While residential mortgage stress is emerging as a significant macroeconomic headwind, institutional and private investors remain active, particularly in sectors offering defensive income streams (Viva Hyde, 2026; Herde, 2026b). The transition towards more stable interest rates has fostered a broadening recovery, with the "flight to quality" remaining the dominant investment theme across the industrial and retail sectors (The Courier-Mail, 2026; Herde, 2026b).

This Week’s Highlights

Industrial – UniSuper South West Portfolio

43-71 Rudd St, Oxley;

2508 Ipswich Rd, Darra;

104 Bandana St, Richlands

UniSuper has significantly expanded its industrial footprint in Brisbane's south-west corridor with a $204 million portfolio acquisition (Herde, 2026b). The deal encompasses approximately 53,000 m² of Gross Lettable Area (GLA) across three strategic sites in Oxley, Darra, and Richlands (Herde, 2026b). The properties are fully leased to multiple tenants and benefit from exceptional connectivity to major intermodal transport nodes. This off-market transaction reflects continued institutional confidence in the South East Queensland logistics sector ahead of the 2032 Olympics (Herde, 2026b).

Retail – HomeCentre Morayfield

321-343 Morayfield Road, Morayfield

BWP Trust, the largest owner of Bunnings Warehouse sites in Australia, has acquired HomeCentre Morayfield for $48 million in a discreet off-market trade (Pallisco, 2026). The transaction, reflecting a 5.75% net passing yield, involves an 11,322 m² GLA centre situated on a prime 2.83ha site opposite the Morayfield SuperCentre. The asset is fully occupied by six national tenancies, including Nick Scali, Super Cheap Auto, and Amart Furniture, with a WALE of 4.04 years. The sale highlights institutional demand for high-quality retail assets with defensive cash flows in high-growth metropolitan corridors (Pallisco, 2026).

Office – Maroochydore Whole-Floor Investment

Level 1, 17 Duporth Avenue, Maroochydore

A private investor has secured Level 1 of 17 Duporth Avenue for $3.46 million, reflecting a yield of approximately 6.75%. The 583 m² NLA office asset is fully leased to high-calibre tenants, including HTA Advisory and CBRE. This transaction underscores the ongoing appetite for premium, income-producing office space in regional Sunshine Coast hubs, where low vacancy rates continue to support rental growth (CBRE Sunshine Coast, 2026).

General News

New ACCC Mandatory Merger Regime: A critical regulatory shift that came into effect on 1 January 2026, impacting high-value commercial property acquisitions (ACCC, 2026; HWL Ebsworth, 2025):

• The Change: The Australian Competition and Consumer Commission (ACCC) has transitioned to a "mandatory and suspensory" merger control regime.
• Impact on Property: Large-scale commercial real estate acquisitions, including significant leasehold interests and "creeping" land acquisitions, must now be formally notified to the ACCC if they meet specific turnover or transaction value thresholds.
• Thresholds: Generally applies to acquisitions where the combined Australian revenue of the parties exceeds $200 million and the target asset's revenue exceeds $10 million (or transaction value exceeds $250 million).
• Industry Consequence: Investors must now factor in a mandatory "standstill" period (typically 15 to 30 business days for Phase 1) before completion. Failure to notify notifiable deals renders the transaction void 
  
  

Queensland Mortgage Stress: Fresh data indicates Queensland homeowners have experienced a $22,000 annual increase in loan repayments over the past decade, the highest in the nation (Viva Hyde, 2026). For the commercial property industry, this reduction in household discretionary income is expected to place pressure on secondary retail assets, while reinforcing the value of non-discretionary "daily-needs" retail centres (Viva Hyde, 2026).

Regional Insurance Mutual Fund:

Leigh McCracken, the publican of the historic Cobb and Co pub in St George, has seen his annual insurance premium skyrocket from $22,000 in 2016 to $168,000 in 2026. This reflects a more than 660% increase, leading him to scale back operations and work behind the bar himself to manage the financial burden.One of the main contribution factor is construction inflation. Rebuild costs in regional areas have increased around 40% since 2020 which increases the "sum insured" values.

Six councils in south-west Queensland are exploring a not-for-profit mutual insurance fund to counter soaring premiums, which have risen up to sevenfold for some commercial operators over the last decade (Scott & McKenna, 2026). This move could significantly improve the viability of regional commercial assets, such as hotels and local businesses, by lowering high fixed operating costs (Scott & McKenna, 2026).

Final Take

The January 2026 market is characterised by a definitive pivot towards "de-risked" essential services and income-secure assets. While high household debt and rising operational costs such as insurance create localised challenges, the industrial and infrastructure-linked sectors continue to thrive due to record-low vacancy and the state's long-term growth fundamentals. Investors are increasingly prioritising assets with strong tenant covenants and prime locations to hedge against broader economic volatility (Herde, 2026b; The Courier-Mail, 2026).

References

ACCC. (2026, January 1). Mergers and acquisitions: The new merger control regime. Australian Competition and Consumer Commission. https://www.accc.gov.au/business/mergers-and-acquisitions

CBRE Sunshine Coast. (2026, January 12). Level 1, 17 Duporth Avenue, Maroochydore. RealCommercial. https://www.realcommercial.com.au/sold/property-level-1-17-duporth-avenue-maroochydore-qld-4558-504971752

Herde, C. (2026a, January 16). Residential expansion. The Courier-Mail, 61.

Herde, C. (2026b, January 16). Industrial boom attracts. The Courier-Mail, 62.

HWL Ebsworth. (2025, October 29). The New ACCC Merger Regime and Leases. https://hwlebsworth.com.au/the-new-accc-merger-regime-and-leases

Nolan, M. (2026, January 19). Investor buys CBD building. The Chronicle, 4.

Pallisco, M. (2026, January 21). Argus flips Brisbane growth corridor homemaker centre. RealEstateSource. https://www.realestatesource.com.au/argus-flips-brisbane-growth-corridor-homemaker-centre/

Scott, M., & McKenna, M. (2026, January 17). Region’s DIY insurance move. The Australian.

The Courier-Mail. (2026, January 16). Quality draws bidders. The Courier-Mail, 61.

Viva Hyde. (2026, January 17). Queensland leads the way for mortgage pain. The Gold Coast Bulletin, 25.