Queensland Commercial Property Market Wrap – Week Ending 5 June 2025
Overview
Queensland’s commercial property market remains buoyant, driven by developer demand, scarce industrial land, and investor interest in regional and lifestyle assets. This week saw a major coastal site sale in Caloundra, strong movement in industrial land in Brendale, and regional retail investment in Townsville. Residential development and infill site acquisitions also show the ongoing push to meet housing and commercial needs in high-demand growth corridors.
Development
Caloundra, Sunshine Coast – Landmark Site Acquired for $19 Million
Gardner Vaughan Group has purchased a 5,289 sqm beachfront site at 1–9 Bulcock Street and 45–47 Bombala Terrace for $19 million. The property, approved for a mixed-use precinct including 104 residential apartments, a 125-bed hotel, and 2,976 sqm of commercial space, attracted 210 enquiries and seven offers.
Located in central Caloundra, the site offers panoramic ocean views, Pumicestone Passage, and the Glasshouse Mountains. The purchase adds to Gardner Vaughan’s growing Sunshine Coast portfolio, reinforcing strong demand for well-located, high-amenity projects in supply-constrained areas.
Industrial
Brendale – 5ha Industrial Site Sells for $23 Million
Taipan Corporation, linked to the Scifleet automotive group, acquired a 49,380 sqm raw industrial parcel at 181 South Pine Road, Brendale, for $23 million. Cushman & Wakefield brokered the deal, which reflects a $466/sqm land rate.
The site, previously owned by Chuan Xin Pty Ltd, last sold in 2023 for $18.7 million. Demand was intense, with 10 genuine offers received. Owner-occupiers are particularly active as supply of large sites in the northern corridor tightens.
Retail & Entertainment
Townsville – Entertainment Complex Changes Hands
A multi-tenant entertainment and retail site in Thuringowa Central has been sold off-market to an Australian family office. The property includes a cinema, bowling alley, and supporting retail outlets. Reading International, which acquired the site in 2015 for $33 million, divested the asset via JLL and RWC.
The deal reflects rising interest in high-yield regional assets, with private capital targeting well-positioned, experience-driven properties.
Residential – Mixed-Use Development
Taigum – Townhouse Site Secured for $13 Million
A 2.1ha infill site at 189–203 Beams Road, Taigum, has been acquired by a local developer for $13 million. The property came with existing approvals for a mixed-use precinct, though the buyer intends to develop townhouses exclusively.
The site, formerly home to Centrepoint Church and used as car parks, attracted nine strong bids. It offers 135m frontage to Beams Road and sits adjacent to Taigum Square shopping centre and transport links. The new residential focus aims to ease local housing pressure.
Retail Investment
Mackay – Bulky Goods Retail Asset Bought for $10 Million
Mackay Property Developments has acquired a 4,800 sqm large format retail centre at 181–195 Maggiolo Drive, Paget, for $10 million. Anchored by Truckline (Bapcor Group), Rexel, and Australia Post, the site is 78% occupied with 1,049 sqm of leasing upside.
The 8,533 sqm site offers a 6.3% yield. The buyer acted quickly, purchasing under private treaty with leasing interest already underway for the remaining vacancy.
Office
Fortitude Valley – Construction Firm Buys New HQ for $2.3 Million
Melrose Property has purchased a two-storey office building at 37 Baxter Street, Fortitude Valley, for $2.3 million. The building includes a leased ground-floor showroom and vacant upper-floor office space, which the buyer plans to convert into a new HQ.
On a 403 sqm site with five car parks, the asset previously traded in 2020 for $1.98 million. Local owner-occupiers continue to drive demand for inner-city commercial properties with flexible use potential.
Sector Snapshot
Childcare Investment Surge
Childcare property transactions hit $205 million in Q1 2025, up 58% year-on-year, according to Stonebridge Property Group. Government support, including $16 billion in upcoming subsidies and $5 billion for universal early education, is fueling investor confidence.
Recent Stonebridge sales include:
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Edge Early Learning, Morayfield: $7.85 million (5.26% yield)
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Giggle & Learn Belmore, Sydney: $5.42 million (4.23% yield)
The firm expects demand to remain strong through 2025, with growing interest from private capital and Asian investors entering the market without prior knowledge.
In February 2025, three key childcare property transactions in Queensland highlighted strong investor demand for long-term, secure assets:
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Ipswich: A 76-place Amaze Early Education centre sold for $4 million, achieving a 5.30% yield. Five registered bidders competed, and the sale went $315,000 over reserve. The site is secured by a renewed 10-year net lease to 2035.
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Toowoomba: A Grow Early Education centre in the CBD sold for $7.4 million on a 5.46% yield. The 119-place facility sits on a 2,428 sqm site with a 15-year lease to 2035.
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Crestmead: An Edge Early Learning centre sold prior to auction for $6.6 million, reflecting a 5.22% yield. The property is under a 20-year triple net lease to 2043 and is located near a local primary school.
If you are interested in commercial properties where a child care business is your tenant, we have good news for you.
FOR SALE | DA Approved Childcare Development Site
Outlook
Investor activity remains strong across Queensland’s key growth markets, from lifestyle precincts to industrial hubs. Developers are moving quickly to secure prime infill and coastal land, while investors chase retail and alternative assets with long-term growth potential. With a limited supply and ongoing infrastructure investment, commercial property fundamentals remain positive as we head into mid-2025.
References
Cushman & Wakefield. (2025, May). Land squeeze intensifies as Brendale block fetches $23m in tightly held market. https://www.cushmanwakefield.com/en/australia/news/2025/05/land-squeeze-intensifies-as-brendale-block-fetches-%2423m-in-tightly-held-market
Gilmore, C. (2025, June 4). Developer wins $19m bidding war for prime site. Sunshine Coast News. https://www.sunshinecoastnews.com.au/2025/06/04/developer-wins-19m-bidding-war-for-prime-site/
Property Markets News. (2025, May). Plans for housing development in Brisbane northside suburb after site sells for $13 million – JLL. https://propertymarkets.news/plans-for-housing-development-in-brisbane-northside-suburb-after-site-sells-for-13-million-jll/
Ray White Commercial. (2025, April). Blockbuster retail asset sold for $33.25m in Townsville. https://www.raywhitecommercial.com/news-and-market-insights/news-media/blockbuster-retail-asset-sold-for-33-25m-in-townsville
Real Commercial. (2025). Property sold: 37 Baxter Street, Fortitude Valley, QLD 4006. https://www.realcommercial.com.au/sold/property-fortitude-valley-qld-4006-504694340
Real Estate Source. (2025, April). Reading sells a major retail entertainment complex. https://www.realestatesource.com.au/reading-sells-major-retail-entertainment-complex/
Real Estate Source. (2025, May). Developers swap high-profile north Brisbane site. https://www.realestatesource.com.au/developers-swap-high-profile-north-brisbane-site/
Stonebridge Property Group. (2025, May). Australian childcare property market continues to surge with $205 million transacted in 2025. https://stonebridge.com.au/australian-childcare-property-market-continues-to-surge-with-205-million-transacted-in-2025/
The Industrialist. (2025, May 14). Brendale industrial site sold for $23 million – Cushman & Wakefield. https://www.theindustrialist.com.au/properties/2025/05/14/brendale-industrial-sold-23-million-cushman-wakefield/1747207180
For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane
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