Market Overview | Commercial Collection Q2 2025
The latest edition of the Commercial Collection highlights a variety of property opportunities across the Hunter region and beyond. This period presents several developments in the commercial property market, with close attention on updates from the Reserve Bank and the recent federal election influencing purchase decisions for many.
The Labor party has this week confirmed to the Financial Review that it has no intention to ban SMSF’s from speculative property investment, despite this having been on the agenda previously. They are however they are still planning to take to the senate some legislative changes to superannuation tax concessions that would make them “less generous”. With non- residential property, non-recourse loans by SMSFs reported by the ATO to have a value of $24.9 billion, the confirmation that no ban is likely to be put forward is welcome news. How the tax concession changes will impact commercial property investment by SMSF’s is something we will be watching closely.
Labor's approach to climate policy and sustainability may mean that commercial landlords and developers could face stricter energy standards and ESG-related compliance, leading to increased operating and retrofitting costs, particularly for older properties.
The international terminal at Newcastle airport is scheduled to open in a few months, with recent photos of the terminal shared on social media platforms by the Airport. This development promises significant growth for the local Hunter economy, with an estimated local economic increase of $12.7 billion over 20 years, according to the airport's 2023-2024 annual report. Additionally, local manufacturers will gain direct access to international markets, potentially lowering transport costs currently incurred when reaching Sydney’s international airports for export. Newcastle Airport projects that the international terminal will support $6.5 billion of additional business activity via increased freight access to the area.
The Newcastle commercial property market continues to experience strong interest in investment opportunities, particularly in the Maitland region, where enquiries remain high. The industrial sector is maintaining its strong performance due to sustained low vacancy rates, high demand, and rising rental and land values. As more investors seek opportunities in Newcastle for value and promising investments, the market appears likely to sustain its current momentum.
With the market continuing to evolve, we look to provide clarity and insight that is needed to make informed property decisions. Speak with our team today to gain tailored advice on your next commercial property strategy.
