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Optimism in commercial property has lifted across every sector and state in Australia, according to NAB’s latest Commercial Property Survey.
Melbourne led much of the turnaround, with the office property sector experiencing fewer vacancies, as the return to work heats up.
For the first time since prior to the pandemic, the Melbourne office market is showing positive signs and is primed for value growth.
NAB said there is a “brighter mood” among developers and investors, as the hangovers from COVID-19 continue to subside.
“With confidence returning to Melbourne’s commercial property market, businesses are feeling more secure about leasing new office space, expanding operations, or even buying property,” said NAB group executive, business and private banking, Andrew Auerbach.
“We’re seeing renewed interest from both local and interstate investors, and this momentum is creating new opportunities for growth and innovation across the region.”
This increased investment in commercial property presents an opportunity for brokers to diversify.
This strong growth isn’t exclusive to commercial property, either. The latest Lawpath New Business Index revealed that over the month of August, there were 104,784 new Australian Business Numbers (ABNs) registered. This is a 21 per cent increase from the same period in 2024.
Making up this growth were 31,642 company formations, a 17 per cent increase from August 2024.
Sole traders increased by 30 per cent from last year, with 75,268 new entrants over the month.
Young people are surging with entrepreneurial spirit, with a 62 per cent yearly increase in the number of 18–24-year-old founders.
Ipswich was recognised as a key area for small business development, with a 68 per cent year-on-year increase in new businesses.
Cairns was also a strong performer, recording a 34 per cent annual increase.
Armadale and Mirrabooka were the fastest-growing Perth suburbs, rising 45 per cent and 41 per cent, respectively, year on year.
Tarneit/Hoppers Crossing in Victoria recorded the highest number of business registrations, reaching 1,094 in August, a 23 per cent yearly increase.
“This is the clearest signal yet that Australia’s business landscape is being reshaped,” commented Tom Willis, Lawpath’s CMO and co-founder.
“We’re seeing entrepreneurs in their 20s, we’re seeing the suburbs and regions emerge as powerhouses, and we’re seeing more people start service-based ventures rather than traditional retail or property plays. The centre of gravity for entrepreneurship is shifting and it’s accelerating.”
The influx of new-to-market businesses and the growing appetite for commercial investment play into the hands of the diversified broker.
Those who have the capability to service the growth needs of these borrower segments will reap the rewards.
[Related: Beyond the home loan: Why SME lending is the next big opportunity]
