Investment activity in Australia’s industrial market expected to accelerate further in 2025
Australia’s industrial market has seen an uptick in investment volumes, highlighting an improved economic outlook and investor confidence, according to the latest research from Knight Frank.
17 April 2025
The firm’s Australian Industrial Review Q4 2024 found $10.6 billion in industrial assets sold over 2024, which was 23% higher than 2023
Investment activity picked up over the second half of 2024 with sales volumes totalling $5.9 billion.
Knight Frank National Head of Industrial Logistics James Templeton said investment activity was expected to accelerate further in 2025.
“Multiple transactions have already been executed in 2025, and we anticipate momentum will continue as economic conditions improve,” he said.
“The activity we have seen in the market following on from last year is evidence that investors have long-term confidence in the industrial sector, and indeed retain a strong preference for industrial assets.
“We have seen one rate cut so far this year and with further cuts forecast this year we expect this will assist in fuelling the market.”
Knight Frank Partner, Research and Consulting in Queensland Jennelle Wilson said investor demand and easing monetary policy had brought stability to yields in Australia’s industrial market, with some slight exceptions.
Prime yields held firm in Q4 across Sydney (5.46%), Melbourne (5.58%) and Perth (6.5%), while Brisbane and Adelaide saw a slight tightening of 2 basis points and 3 basis points respectively to average 6.14% and 6.28%.
“Secondary yields experienced minor movements except in Brisbane with yields tightening 22 basis points over Q4 to average 6.82 per cent,” she said.
“Looking ahead, the market is likely to respond positively to the lower interest rate environment with average prime yields expected to start contracting in coming quarters.”
