澳大利亚首都观点2026年2月

Click here tosubscribe Transaction activity remained strong in Q4 with improved investorsentiment. This confidence has helped spur capital growth across allmajor property sectors, with stronger demand beginning to drive areduction in yields in select markets. February 2026 Key insights Rising investor confidence that asset pricing has reached cyclical lowshas seen liquidity return to capital markets. This momentum isexpected to persist despite higher interest rates as improving ALISTAIR READSENIOR ECONOMIST, RESEARCH & CONSULTING $51.4b41% 32% Cross-border capital mostactive Investment volume in 2025 Change in annual volumes Total investment volumes in 2025 roseto $51.4 billion with increased investorconfidence. Total investment volumes in 2025were41% higher than in 2024. Cross-border investors have been themost active, accounting for 32% oftotal acquisitions in 2025. 6.7% 5.6% 5.6% National prime industrialyield National retail yield National prime office yield The weighted Australian prime officeyield remained stable–for the secondconsecutive quarter–at 6.7% in Q42025. The weighted Australian averageprime retail yield fell to 5.6% in Q42025. The average Australian primeindustrial yield across the easternseaboard remained steady at 5.6% inQ4 2025. Investment activity is rising INVESTMENT ACTIVITY REMAINS SELECTIVE OFFICES SUPPORT TRANSACTION ACTIVITY IN Q4 Total Australian transaction volumes rose in 2025 to$51.4 billion, up 41% from 2024. The continued growth ofinvestment into retail assets was a key story of 2025 with The improvement in investment activity is largely beingdriven by NSW, and the retail and industrial sectors. NSW rolling annual investment volumes have steadilyrisen from around $16 billion at the start of 2025 to aroundthe pre-pandemic average of $22 billion. This signals theincreased investor appetite for assets in Sydney which hasseen a strong improvement in economic conditions Investment volumes fell to $14.1 billion in Q4 2025following an exceptionally strong Q3. Increased investorconfidence has continued to drive improved transaction Transaction activity in Q4 was driven by the continuedstrength in the retail market with $4.3 billion transactedin Q4. The office recovery continued with $4.2 billion ofassets transacted, followed by industrial which remained Increased transaction activity has also largely been driven by increased demand for retail and industrial assetswhere annual transaction volumes have risen throughout2025 to at or above their long-term average. Officeinvestment volumes remain relatively subdued, with the Significant transactions in Q4 included a 75% stake inGrosvenor Place which sold for $1.3 billion, a 25% stake inWestfield Chermside for $683 million,HyperdomeShopping Centre for $678.7 million and Port Adelaide NSW driving increased liquidity12-month rolling sum of daily transaction volume Source: Knight Frank Research, RCA REITs return as buyers REITS SHIFT TO NET BUYERS IN Q4 CROSS-BORDER INVESTMENT REMAINS STRONG Institutional capital led purchasing activity with $3.4billion of transactions (29% of total activity) in Q4 2025,followed by $2.9 billion from private capital (24%), $2.8billion from public capital (24%), $2 billion from cross- Cross-border investors remained net buyers in 2025,buying $14.4 billion of assets (32% of total activity). Cross-border investment was relatively diversified among thesectors with 28% of investment in Seniors Housing and The most significant cross-border transaction of the yearwas Brookfield’s sale of Aveo–a retirement-livingoperator–for $3.85 billion to South Korea’s National For the first time since Q3 2022, A-REITs were net buyersof assets in Q4 2025. This was primarily driven by REITsinvesting in retail assets, such as Dexus in WestfieldChermside and Charter Hall in Burwood One. GPT’s officepurchase of Grosvenor Place also was a significant indicator of the return of the REITs, particularly given itwas purchased using balance sheet capital. The return of Other major transactions included US-based Greystar’sstake in the $1.4 billion acquisition of GIC’s AustralianPBSA portfolio, and Japan’s Mitsubishi Estate buying a50% stake in the Harbourside mixed-use project from Cross-border capital, particularly Asian capital, continuesto display strong demand for Australian assets and this isexpected to persist throughout 2026 as investors look to In 2025, cross-border buyers were most active buying$14.4 billion of assets (32% of total activity), followed byinstitutions (26%), privates (24%) and public capital (14%). Cross-border capital deployment is diversified REITs return as buyers in Q4Net investment volumes by investor type (AUD billions) Strong investment from Asia and the USProportion of cross-border transaction volume, 2025 (%) Source: Knight Frank Research, RCA Capital growth returns RETAIL THE BEST PERFORMER IN 2025 OFFICE MARKET REMAINS DIVERGENT The retail sector was the