CEO Market Update for Q2 2026
The latest edition of the Commercial Collection is now available, featuring over 100 Commercial and Industrial property opportunities spanning Newcastle, Maitland and the Hunter Region.
It has been a whirlwind quarter in the market that has impacted many businesses, investors and individuals. From interest rate rises to fuel shortages and now the Federal Government’s recently released budget, it’s a market that is somewhat in a state of flux as to what the next best step is. For most, the largest shocks have come from the increased fuel price and supply issues and the change in stance from the Government in relation to Capital Gains Tax (CGT) and negative gearing.
In the commercial and industrial markets, fuel shock comes at a high risk to businesses with logistics concerns and increased costs impacting supply chains and production costs. The increased fuel supply obtained by the Government and the long-term plan now in place of greater fuel security ongoing is welcome news and provides somewhat of a long-term silver lining that we should be better prepared for fuel shortages in future.
The change to negative gearing has also had a silver lining when it comes to commercial property. That commercial property remains relatively untouched in this area is a key benefit.
What this does likely mean, however, is that those who would otherwise have invested in residential real estate, may now look to enter the commercial and industrial property market instead. For vendors and those looking to sell in the near future, this may mean greater interest in listings and increased prices obtained as a result.
For those looking to buy, these proposed changes from July 2027 may mean greater competition to obtain these entry level listings. As a result, the way that these investors purchase property may take on a higher level of complexity with investors coming together to pool resources in order to get a foothold in the commercial property market.
For developers, the news was relatively good on this front. New builds carry the same negative gearing benefits that they always have and in turn, this may also provide developers with a higher level of demand on their projects.
The CGT implications will be one to watch in terms of the impact on the commercial property market. We may see some sale decisions brought forward to lessen the impact of the changes.
Of course, with none of these changes being legislated yet, the best we can do is provide conjecture. Whichever way you look at it, the changes will have an impact on the way we invest and divest in the commercial property market and the property market as a whole.
One thing is clear, property is now and will continue to be, a reliable investment.
That’s just one of the reasons that we have just expanded our reach into Port Macquarie and the Mid North Coast region. It’s a market that aligned with our strategic vision to bring commercial property expertise to regional markets. The owners and investors in these markets deserve to have access to the same level of capability and reach that is often associated with metropolitan markets. Not only does this expansion highlight the region to a greater pool of investors but it also ensures that the region has the investment in it to ensure businesses can grow and have access to these properties into the future.
