
Australian property deals hit $5.79b in Q1
This represents a 24% YoY increase.
In a recent report, Savills said preliminary data indicates investment activity in Australian real estate slowed in Q1 following a pick-up in Q4. Deal volumes across the office, industrial, retail, and data centres sectors totalled approximately AU$5.79 billion (AU$10 million+) in Q1, with an additional AU$2.91 billion worth of deals pending.
“Excluding pending deals, this represents a 41% decline from Q4/2024, although deal volume was 24% higher than Q1/2024,” the report added.
Here’s more from Savills:
The retail sector bucked the overall trend, with deal volume rising by 30% in Q1 to AU$2.82 billion (excluding AU$866 million in pending transactions), while transaction volume was 32% higher than Q1/2024. Several half stakes in major shopping centres in Sydney, Melbourne, and Perth boosted investment volume.
Office investment volume fell 5% in Q1 to AU$1.84 billion although deal activity is well above the depressed levels of a year ago, with transaction volume 69% higher than Q1/2024. Investor appetite for high quality and centrally located office assets remains robust, highlighted by the approximately AU$1 billion worth of pending deals involving prime CBD assets.
Following a strong Q4, deal activity in the industrial sector slowed in Q1, with investment volume down 69% to AU$1.01 billion, and 20% lower than Q1/2024. Around AU$664 million worth of deals are currently pending. Goodman’s purchase of the Minto Intermodal Facility from Qube for AU$200 million boosted activity in Q1.
Investor sentiment has improved markedly with the shift to lower interest rates, and the potential for further easing from the RBA. Asset pricing across the commercial sectors appears to have reached a cyclical bottom, attracting investors to deploy capital. Greater uncertainty around the global outlook is also boosting the appeal of safe-haven investment destinations like Australia.