Growing interest from investors seeking alternatives to residential property in the wake of the Federal Budget is helping drive demand for commercial property, according to Raine & Horne Commercial, with four premium assets selling for a combined $12 million through its latest National Auction Event last month. 

The two-day auction event commenced in Brisbane on Wednesday, 24 June, before moving to Sydney on Thursday, 25 June. The highly anticipated quarterly event, launched in November 2022 and having now sold over $150 million worth of commercial properties, brought together a carefully curated selection of mostly vacant possession commercial properties from Sydney and Brisbane. 

According to Trent Bruce, Managing Director, Raine & Horne Commercial Brisbane North, commercial property is increasingly attracting the attention of both owner-occupiers and investors. 

“Vacant possession opportunities provide buyers with the flexibility to customise a property to suit their own business requirements, while at the same time investors may view these assets as an attractive alternative to traditional residential investments,” said Trent, who was involved in the auction sale of a boutique tilt slab office/warehouse at 2/27 Magura Street, Enoggera, in inner northwestern Brisbane.  

Trent added, “With the ongoing discussion about potential changes to negative gearing and residential investment, commercial property is increasingly being considered by investors seeking diversification and stronger yields.” 

Luke Smith, Director of Raine & Horne Commercial Inner West | South Sydney, said enquiry levels remained balanced despite more challenging conditions for small businesses and the broader commercial property market. 

"At this stage, we’re seeing pretty much equal enquiries from owner-occupiers and investors for our listings,” said Luke, who helped oversee the sale under the hammer of a rare industrial building at 12-14 Sloane Street, Marrickville in Inner Western Sydney. The property sold for $5.36 million.  

“We’re still transacting. There may have been a bit of a dip in the market, but in the scheme of things, it should only be temporary. If anything, that creates an opportunity for buyers who are prepared to take a longer-term view, making now a good time to buy quality commercial property," Lukesaid. 

Luke said quality commercial assets continued to appeal because they offered both business utility and long-term investment value. “The reality is that even if you’re buying as an owner-occupier, it’s still an investment. You’re simply putting your own business into that investment, and people can still see the upside in owning quality assets.” 

Mark Ammoun, Director of Raine & Horne Commercial Bankstown, said experienced commercial property buyers were looking beyond short-term headlines and focusing on long-term fundamentals. 

“There’s always background noise in the market, but commercial real estate is typically a medium to long-term investment. Many buyers understand that and are looking beyond the headlines to secure quality assets that will deliver value over the longer term,” said Mark, who sold a landmark building at 263 Kingsgrove Road, Kingsgrove NSW under the hammer and above reserve for $4.25 million. 

Mark continued, “Ironically, while much of the discussion has centred on proposed changes to residential investment, there has been far less attention on the planned changes to the way capital gains tax will apply when people sell a business. Small business owners are an important part of the commercial property market, so those proposals deserve just as much scrutiny.”  

Mark added that the Kingsgrove property represented a rare opportunity to acquire a tightly held local landmark. “The property has been owned by Australia Post since it was originally constructed and has long been part of the fabric of Kingsgrove. Opportunities to secure a freestanding commercial asset with that sort of history and profile rarely come to market,” he added. 

Trent Bruce said a national auction event created the momentum needed to deliver the best possible outcome for vendors. “A large-scale national auction event significantly expands the pool of potential buyers by exposing these properties to local and interstate purchasers. The concentrated marketing campaign creates far greater momentum and urgency than a standalone sale campaign,” he said. 

Luke Smith added that auctions provided certainty for both buyers and sellers. “An auction is a way of bringing buyer interest to a head. It delivers an unconditional offer and, if that offer is accepted, there is an immediate exchange of contracts. It removes much of the uncertainty from the transaction because the deal is done, allowing both buyer and seller to move forward with confidence.”  

The next Raine & Horne Commercial National Auction Event is scheduled for August, with registrations closing on 20 July 2026. 

For all your commercial property sales and leasing needs, contact your local Raine & Horne Commercial office today.