In H1 2025, transaction activity across NSW property sectors has remained mixed, with lower interest rates supporting a cautiously optimistic outlook moving forward. The Sydney CBD office market saw limited transactions due to low asset availability, although investor sentiment is improving amid easing interest rates and increased market activity is expected during the remainder of the year. Leasing demand remains stable, with growth in prime locations.
The residential development sector in NSW is benefiting from rate cuts, supporting demand despite persistent high construction costs. The childcare sector shows strong investor interest, particularly for quality assets, though public scrutiny and policy uncertainty present some
challenges.
Healthcare and seniors living assets remain resilient, with heightened activity in the sub-$20 million market. Tenant affordability and lease sustainability are key focuses for investors across sectors. Residential living (Build-to-Rent, Co-Living, PBSA) continues to gain momentum due to affordability pressures and undersupply. Retail assets are attracting strong capital flows, with growing confidence in yield compression and rental growth in key segments.
Our experts across valuation sectors share their analysis and insights in our latest NSW Market Snapshot covering the first half of 2025, as well as what to look out for during the remainder of the year, across Childcare, Health, Aged Care and Seniors Living, Industrial, Office, Residential Development, Residential Living, and Retail.
Click the link below to read the full Snapshot.
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