Australia Commercial Property Market

Australia Commercial Property Market Overview:

The Australia commercial property market size reached USD 33.34 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 77.68 Billion by 2032, exhibiting a growth rate (CAGR) of 8.80% during 2024-2032. The market is driven by factors such as the strong economic growth, increasing population and urbanization, heightened foreign investment, rapid technological advancements, growing focus on sustainability initiatives, and burgeoning infrastructure development initiatives.

Australia Commercial Property Market Trends:

Heightened Economic Growth and Stability

The rising economic growth in Australia is one of the major factors driving the commercial property market. The gross domestic product (GDP) of Australia rose 0.2% and the economy grew 1.5% in 2023-24. This growth leads to increased business activity, which drives the demand for office spaces, retail stores, warehouses, and industrial facilities. Moreover, strong economic policies, such as low interest rates and government stimulus packages, are contributing to the buoyancy of the commercial property market. These factors ensure that businesses have the necessary capital to expand, thus increasing the demand for commercial spaces. Moreover, the Reserve Bank of Australia's (RBA) monetary policies play a crucial role in maintaining economic stability, which in turn benefits the market growth.

Growing Population and Urbanization

The growing population in the country is a significant driver boosting the market growth. The country's population was 26,966,789 people in 2023, with an annual growth of 2.5% (651,200 people). Also, the increasing prevalence of urbanization, as more people migrate to urban areas for work and lifestyle reasons, is creating the demand for commercial spaces. In line with this, the urban populace reached a 23073508 mark in 2023, boosting the need for more retail outlets, office spaces, and industrial areas to support the expanding workforce and consumer base. In addition to this, the development of new business districts and the revitalization of older ones are also favoring the expansion of the commercial property market.

Increasing Foreign Investment

The increasing foreign investment is also playing a vital role in the commercial property market. The stable political environment, strong legal framework, and transparent regulatory systems which provide a level of security to investors is boosting the market growth. Moreover, the increasing foreign capital inflow into Australia's commercial real estate, particularly in office buildings, hotels, and shopping centers, is favoring the market growth. As per industry reports, the investment into Australia's office, retail, and industrial markets topped $7 billion in Q2 2024. Furthermore, the introduction of favorable exchange rates that make property investments more affordable for international buyers is enhancing the market growth.

Australia Commercial Property Market News:

• In July 2023, Lendlease and Daiwa House Australia announced the creation of a new partnership in Australia to deliver a build-to-rent apartment development at Melbourne Quarter. It is a 45-storey BTR tower that offers a high-quality, tenure secure alternative to the traditional apartment rental market with 797 residences in a mix of studio, one, two and three bedroom-apartments. 
• In October 2023, Costco announced that the company plans to expand its presence in Australia, with the establishment of multiple new warehouses and several hotspots. In line with this announcement, the company acquired a site in Ardeer, in Melbourne’s western suburbs, and lodged a planning application to develop a new warehouse and service station.

Australia Commercial Property Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on type.

Type Insights:

• Office
• Retail
• Industrial and Logistics
• Hospitality
• Others
   

The report has provided a detailed breakup and analysis of the market based on the type. This includes office, retail, industrial and logistics, hospitality, and others.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Commercial Property Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia commercial property market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Australia commercial property market?
• What is the breakup of the Australia commercial property market on the basis of type?
• What are the various stages in the value chain of the Australia commercial property market? 
• What are the key driving factors and challenges in the Australia commercial property?
• What is the structure of the Australia commercial property market and who are the key players?
• What is the degree of competition in the Australia commercial property market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia commercial property market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia commercial property market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia commercial property industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.