Australia real estate investment surges to AUD13.1b by end-2025

This represents a massive 66% increase from Q4 2024.

Australia’s commercial property investment market gained strong momentum in the final quarter of 2025, with transaction volumes rising sharply across major sectors, according to Savills.

Savills said completed deal volume across office, industrial and retail assets totalled approximately AU$13.1 billion in Q4 (for transactions above AU$10 million), up 30% quarter-on-quarter and 66% year-on-year.

The office sector led the rebound, with investment volumes surging 89% over the quarter to AU$5.5 billion—more than double the level recorded a year earlier. Activity was boosted by major transactions in Sydney, including stake transfers in Grosvenor Place. The Commonwealth Superannuation Corporation acquired the remaining 75% stake in the asset from Blackstone before selling a 50% interest to GPT Group for AU$860 million.

Retail investment also strengthened, rising 33% in Q4 to AU$4.2 billion, up 84% year-on-year. Savills attributed the increase to several major shopping centre deals, including Dexus acquiring a 25% stake in Westfield Chermside in Brisbane from Scentre Group for AU$683 million. Further deals totalling around AU$2.1 billion remain pending, including the Australian Retirement Trust agreement to acquire a 19.9% stake in Westfield Sydney.

Industrial investment moderated in Q4, declining 14% quarter-on-quarter to AU$3.4 billion, although volumes remained broadly stable year-on-year. Transactions included Barings acquiring the Smithfield Industrial Estate from Goodman Group for AU$145 million.

Savills said investment activity is expected to strengthen further in 2026 as investors position for the next phase of the asset pricing cycle, supported by improving market sentiment and renewed transactional momentum.