The first half of 2026 saw Australia's investment sales market continue its transition from price discovery to execution. While capital remains active across all major sectors, investors have become increasingly selective, prioritising assets with clear fundamentals, development upside and long-term scarcity.
Planning reform, housing policy changes and shifting capital allocations have further sharpened competition for quality opportunities, particularly across metropolitan and infill markets.
Below, our state leaders share their views on the trends shaping investment sales activity across Australia.
NATIONAL
Daniel Wolman, Cushman & Wakefield’s International Director & Co-Head of Investment Sales Australia, said
"The first half of 2026 marked a clear turning point for Australia's investment sales market, with improving confidence, stabilising debt markets and greater pricing certainty driving a meaningful increase in transaction activity across all major capital cities.
"While investors remain disciplined, the level of engagement has increased considerably. Capital that spent much of the past two years on the sidelines is now actively pursuing opportunities, particularly where assets offer strong underlying fundamentals, development flexibility or the ability to create value through repositioning.
Oliver Hay, Cushman & Wakefield’s International Director & Co-Head of Investment Sales Australia said
"What has become increasingly evident is the growing divergence between prime and secondary assets. Investors are prepared to compete aggressively for scarce, high-quality opportunities, while assets lacking income resilience or a clear value proposition continue to face greater scrutiny.
"Looking ahead, we expect transaction volumes to continue improving through the second half of the year as capital deployment accelerates and investors gain further confidence that the market has moved beyond the repricing cycle. Markets offering scarcity, planning upside and long-term population growth will remain key beneficiaries of this trend."
VIC
Daniel Wolman, Cushman & Wakefield’s International Director, Co-Head of Investment Sales Australia, said
"Victoria's investment market has entered a significantly more active phase, supported by improving buyer confidence, attractive relative value and growing conviction that pricing has largely stabilised across most asset classes.
"Melbourne continues to attract a diverse range of capital, from private investors and developers through to institutional groups seeking opportunities to acquire quality assets at pricing levels that compare favourably with historical benchmarks and competing markets nationally.
Oliver Hay, Cushman & Wakefield’s International Director, Co-Head of Investment Sales Australia said
"We're seeing particularly strong demand for well-located metropolitan assets and development opportunities where planning reform, housing supply initiatives and urban renewal programs are creating clear pathways for future value growth.
"At the same time, the continued scarcity of quality sites across established inner and middle-ring locations is driving competition among purchasers seeking exposure to Melbourne's long-term population growth story.
"As we move into the second half of 2026, we expect buyer activity to strengthen further as confidence continues to build, with assets offering income security, development potential and strategic landholdings likely to remain the most sought-after opportunities in the Victorian market."
NSW
Matt Pontey, Cushman & Wakefield’s National Director & Co-Head, Investment Sales NSW said
"The investment landscape has shifted materially following the Federal Government's changes to negative gearing. With commercial property retaining its tax advantages, we're seeing capital that would traditionally have been directed into residential assets actively reassessing commercial property and development opportunities.
“At the same time, the repricing cycle has largely played out, giving buyers greater confidence around value and encouraging capital deployment across Sydney's metropolitan markets.
"NSW's planning reforms have created one of the strongest development site stories we've seen in decades. Housing targets, transport-oriented development initiatives and planning uplift across key precincts are fundamentally changing how sites are assessed, with development potential now driving value rather than existing use.
“As a result, we're seeing significant demand from developers and investors seeking opportunities in tightly held locations across the Eastern Suburbs and inner metropolitan corridor."
Miron Solomons, Cushman & Wakefield’s National Director & Co-Head, Investment Sales NSW said
"The defining characteristic of the Eastern Suburbs market remains scarcity. Unlike many other markets, values here are underpinned by a combination of wealth, lifestyle appeal and an extremely limited supply of quality sites.
“That scarcity creates a level of resilience that continues to attract both domestic and offshore capital, regardless of broader market conditions.
"One of the most notable trends we're seeing is the rise of strata amalgamation transactions. Planning uplift across established precincts such as Double Bay, Bondi Junction, Paddington and Randwick has created opportunities for significant redevelopment, but unlocking those sites often requires bringing together multiple owners with differing objectives. These are highly complex transactions, yet they are becoming an increasingly important source of development stock in some of Sydney's most sought-after locations."
QLD
Daniel Cullinane, Cushman & Wakefield’s National Director, Head of Investment Sales QLD, said
"The Queensland investment market has continued to demonstrate remarkable resilience throughout the first half of 2026, underpinned by strong population growth, significant public infrastructure expenditure and an increasingly diversified economy. As capital markets continue to stabilise, investor confidence has strengthened considerably, resulting in a noticeable uplift in transaction activity across both metropolitan and regional markets.
"A key theme emerging across the market is a pronounced flight to quality. Investors are increasingly targeting assets underpinned by long-term income security, particularly those leased to national, government and ASX-listed occupiers. In an environment where income certainty remains highly valued, assets offering secure cash flow from strong tenant covenants continue to attract significant competition from both private and institutional capital.
"We are also witnessing growing demand for repositioning and value-add opportunities from existing assets. Escalating construction costs and ongoing feasibility challenges have made new development projects increasingly difficult to justify, prompting investors to focus on assets where income growth, refurbishment initiatives and active asset management strategies can unlock value without the delivery risk associated with ground-up development.
"Regional Queensland continues to outperform expectations, with many investors now viewing regional centres as primary investment destinations rather than secondary markets. Improved infrastructure, population growth, stronger local economies and the ability to secure meaningful yield premiums relative to metropolitan markets have significantly broadened the buyer pool. As a result, we are seeing increasing volumes of interstate and institutional capital targeting high-quality regional opportunities across the state.
"Looking ahead, the long-term economic tailwinds associated with the Brisbane 2032 Olympic and Paralympic Games are expected to remain a major catalyst for investment activity. The unprecedented level of infrastructure spending currently being deployed throughout Queensland is not only enhancing connectivity and productivity but is also providing a strong foundation for future rental growth and occupier demand across multiple asset classes.
"We expect these themes to continue throughout the second half of 2026. Queensland remains one of the most compelling investment destinations nationally and is increasingly attracting capital from interstate investors seeking both growth and diversification. Against a backdrop of ongoing legislative and regulatory changes in other jurisdictions, Queensland's relative stability, economic outlook and long-term growth prospects continue to position the state favourably for both domestic and offshore investors”.
SA
Anton Williams, Cushman & Wakefield’s Associate Director - Investment Sales, South Australia said
“Adelaide’s investment market has moved decisively from price discovery into execution, underpinned by its relative value compared to the eastern seaboard and a growing weight of capital targeting the state.
“With commercial property maintaining clear tax advantages, we’ve seen both interstate and offshore investors increasingly pivot into Adelaide, drawn to higher yields, lower entry points and a more efficient path to deploying capital.
“This is being reinforced by a particularly strong economic backdrop, underpinned by a nation-leading combination of record infrastructure investment, top-ranked business conditions, and the strongest economic and employment growth in the country, collectively driving business expansion, investor confidence and sustained demand across commercial property.
“At the same time, sustained infrastructure delivery and a more progressive planning framework are reshaping how investors assess opportunities, with development potential and repositioning upside becoming key drivers of value, particularly across infill and metropolitan markets.
“Looking ahead, we expect Adelaide to be one of the most active and competitive investment markets nationally as capital continues to reweight toward markets offering stronger risk-adjusted returns. Investor focus will centre on assets with clear value-add, underpinned by population growth, infrastructure delivery and planning reform supporting higher and better use outcomes.
“With limited institutional-grade stock and tightly held ownership, we anticipate increased competition for quality opportunities, particularly from interstate and offshore groups seeking both income resilience and long-term growth in a market that continues to outperform on a relative basis” he said.
WA
Nick Charlton, Cushman & Wakefield’s Director, Co-Head of Capital Markets and Investment Sales, WA said
"The first half of 2026 has been defined by a clear re-engagement of capital into the WA investment market, albeit with a far more selective lens.
“Transactions such as Workzone East and 20 Parkland Road demonstrated that depth of capital is there, but it is highly outcome-driven; purchasers with funds raised in open-ended funds and owner occupiers and groups with a specific strategic angle have been prepared to transact, while more passive syndicator capital remains disciplined around WALE and vacancy.
“At the same time, we’ve seen campaigns that previously struggled in 2023–2024 begin to transact as pricing expectations reset and debt markets stabilise, indicating improving confidence and a genuine reopening of liquidity across the Perth market.
Ben Younger, Cushman & Wakefield’s Director, Co-Head of Capital Markets and Investment Sales, WA said
"As we move into the second half of 2026, we’re seeing a meaningful pickup in both depth and quality of opportunities coming to market, with major campaigns to launch in the CBD and suburban stock that is set to test a broad cross-section of active capital.
“What this highlights is a market that is no longer one-dimensional; core CBD assets and well-located suburban investments are all attracting interest, but from different pools of capital with very specific mandates.
“We expect competition to strengthen where investors can clearly underwrite either income security or repositioning upside. The challenge remains alignment on pricing, however with increasing offshore and interstate engagement and a continued lack of new supply, based on our ongoing campaign experience and knowledge of active capital we can drive competitive tension and deliver strong outcomes for vendors through the remainder of the year”.
To contact the team, please visit https://cushwk.co/4aSHNi7
