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Victorian Commercial Property Market Insights – 2024 Review

Article | 1min read

by JONES REAL ESTATE on February 04, 2025

The latest MSCI Australia Capital Trends report provides valuable insights into the national property market, with key takeaways for Victoria’s commercial real estate sector.

Market Performance in Victoria

Transaction Activity:

  • Melbourne’s industrial sector ranked as the third most active market nationwide.
  • Retail and office transactions in Melbourne declined, indicating investor caution

Sector-Specific Trends:

  • Industrial: Demand remains strong, securing its position as one of the top-performing sectors.
  • Office: Melbourne’s office market continues to struggle, experiencing a 19% decline in transaction volumes, its lowest level in over a decade.
  • Retail: Investor sentiment is improving, with major retail deals suggesting renewed confidence in premium assets.

Notable Victorian Transactions:

  • Austrak Business Park, Melbourne – Sold for $600 million (Industrial)
  • 367 Collins Street, Melbourne – Sold for $315 million (Office)
  • Stockland Glendale, Melbourne – Sold for $315 million (Retail)

Key Takeaways for Investors in Victoria

  • Industrial remains the strongest sector, continuing to attract significant capital.
  • Office market conditions remain uncertain, with values yet to stabilise.
  • Retail is showing signs of recovery, particularly in high-quality assets.

With interest rate cuts anticipated in 2025, market conditions could shift, creating new opportunities. If you’re considering an acquisition or sale, now is the time to assess investment strategies in industrial and retail, while monitoring the office sector for potential value plays.

Would you like to discuss how these insights could impact your portfolio? Please feel free to reach out to info@jonesre.com.au.

Source: MSCI – Real Capital Analytics.

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