Medical facilities and fast-food drive-thrus lead demand in 2025, with Colliers forecasting disciplined capital and land-rich strategies to dominate in 2026.
Victoria’s premium investment market in 2025 has been defined by resilience and a decisive flight to quality. Despite broader economic recalibration, investors demonstrated a clear preference for assets combining secure income streams with strategic land value, reflecting a cautious yet opportunistic approach in a year marked by selective capital deployment and shifting sentiment.
Demand Drivers in 2025
Medical facilities and fast-food drive-thrus dominated Victoria’s premium investment market in 2025, emerging as the most sought-after asset classes. This demand was driven by strong tenant covenants, business stability and consistent consumer demand, qualities investors prioritised in a cautious, selective market. Healthcare assets offered needs-based demand and long-term certainty, while fast-food drive-thrus capitalised on multi-channel resilience and high-volume trade areas. Both sectors featured long-term leases, significant tenant investment and locations with high barriers to entry, ensuring income durability and strong residual land value.
Who Bought and Why
Interstate investors dominated the buyer pool in 2025, with 65 per cent of Colliers’ Premium Investment transactions in 2025 attributed to interstate and offshore capital, who were drawn to Victoria’s relative value compared to their home states where pricing had surged. Many viewed the market as near its cyclical bottom, presenting an opportunity for upside as sentiment improves and interest rates stabilise. Their focus was on assets offering clarity, secure leases, recoverable outgoings including land tax, and strong land fundamentals, prioritising income protection and capital preservation over chasing headline yields.
Notable Colliers’ Premium Investment Transactions
Colliers delivered strong results across a diverse range of premium investments in 2025 Highlights included the Watsonia Medical Clinic, which sold for $5,580,000 and the Doors Plus portfolio of four Victorian assets achieved a combined value exceeding $10,000,000, reflecting sustained appetite for retail investments with proven operators. Perhaps most notably, the landmark Waverley Park Training Facility and Goodlife Health Club investment was acquired by the AFL.
Looking Ahead to 2026
Victoria’s premium investment market is expected to maintain its strong focus on quality and defensibility, with investors targeting land-rich assets in irreplaceable locations underpinned by secure income streams and long-term leases that recover land tax.
Colliers is preparing to launch a significant pipeline in early 2026, including a day surgery clinic in Melbourne’s leading health precinct backed by a globally supported tenant, and a coastal investment in a tightly held beachside suburb offering compelling upside. These assets reflect the prevailing themes of covenant strength, strategic land value and enduring demand.
With confidence returning and quality assets leading the way, 2026 is shaping up to be a year of disciplined strategies and strong growth potential for premium investments in Victoria.
Written by Lucas Soccio, Colliers Head of Premium Investments Victoria
Related Articles
