Australia’s Commercial Property: The New Frontier for Asian Private Capital

30 April 2025
Zomart He, Partner | Head of Asian Investment Services, Burgess Rawson

By Zomart He, Partner | Head of Asian Investment Services, Burgess Rawson

Australia has long been seen as a global safe haven, and this reputation only continues to strengthen. Despite global economic uncertainty, our commercial property market remains a top destination for investors seeking stability and long-term growth.

In the first quarter of 2025 alone, Burgess Rawson’s Asian Investment Services team achieved a total sales and settlement volume of $92.795 million across Victoria and Western Australia, demonstrating the sustained demand from Asian private investors.

The softening of global markets, alongside expectations of interest rate cuts, has further boosted Australia’s attractiveness. Investors are increasingly focused on stable, income-generating assets, with commercial real estate emerging as the preferred option.

Currently, over $560 million in undeployed Asian capital is seeking quality commercial investment opportunities through our platform. This capital, coming from private individuals, family offices, and syndicate groups, is highly agile and actively targeting assets ranging from $1 million to $75 million in value.

Key sectors of interest include shopping centres in high-growth suburban corridors, metropolitan childcare centres with strong occupancy, large-format retail centres anchored by national tenants, healthcare assets, logistics hubs, and education-related investments. Recent sales, such as the Sunbury Showrooms LFR Centre, sold off-market for $19.588 million at a 5.97 per cent yield, further reinforce the resilience of well-located, tenant-backed assets, even in a higher interest rate environment. A local Asian investor also snapped up the ALDI anchored Bell Park Plaza Shopping Centre in Geelong for $20.58 million following a highly competitive Expressions of Interest campaign.

Asian investment in Australian commercial property is being driven by several key factors. Geopolitical risks and economic volatility have led many investors to seek stability in markets like Australia. The softer Australian dollar also enhances purchasing power for offshore investors, while a limited supply of institutional-grade, income-generating assets has intensified competition for high-quality properties.

Our buyer demographic highlights this shift. 43 per cent of our buyers come from Mainland China, Hong Kong, and associated regions, 27 per cent from Singapore and Malaysia, 16 per cent from India, and 7 per cent from emerging economies like Vietnam. Indian investment, in particular, has surged, reflecting a broader trend of diversification beyond traditional markets. These buyers are focused on defensive income and long-term capital growth, underscoring the changing investment landscape in Asia.

At Burgess Rawson, we believe that success in this competitive market requires more than just transactional expertise. It demands strategic alignment between asset quality and investor needs. Our dedicated Asian Investment Services team, backed by deep cultural insight and robust cross-border networks, ensures that our clients have a distinct advantage. With over $1.2 billion in completed transactions, we are uniquely positioned to connect Australia’s premier commercial assets with the most active private capital in Asia.

Australia’s commercial property sector continues to present exceptional opportunities for Asian investors looking for security, yield, and long-term growth. At Burgess Rawson, we are proud to facilitate the flow of this capital and unlock investment opportunities that are reshaping the market.