HMW Finance recently brought together industry leaders to explore the evolving Queensland property market and the morning was insightful to say the least. With the sector entering a dynamic phase of transformation, speakers and attendees discussed emerging opportunities for 2025 and beyond.
Experts including NAB’s Head of Market Economics, Tapas Strickland, and Partner at Mitchell Brandtman, Darryl Bird, provided an in-depth analysis of key economic drivers—covering interest rates, inflation, population growth, government policies, international political drivers, construction costs, and the latest property developments. Their insights offered attendees a strategic perspective on how to navigate market shifts and capitalise on upcoming investment opportunities.
Key takeaways:
📌 Interest rate projections: NAB anticipates a cash rate cut beginning in May 2025, with rates potentially falling to 3.10% by early 2026. Lower rates could improve borrowing conditions and enhance property valuations.
📌 International Political Drivers: NAB discussed U.S. trade policies, including tariffs and how the trade deficit, could lead to global inflation and market volatility, impacting Australia’s economic stability.
Construction Cost Trends: Despite some stabilisation, Mitchell Brandtman predict that industrial construction costs are expected to rise by 0.5% in H1 2025 and 2.0% in H2 2025. Rising replacement costs could drive demand for existing assets over new developments.
📌 Regional Market Growth: Infrastructure investments and population shifts continue to bolster regional property demand, presenting attractive opportunities for investors looking outside major cities.
Labour & Supply Chain Pressures: While material costs are normalising, persistent labour shortages are constraining supply. This is keeping vacancy rates low and supporting rental growth, particularly in the industrial sector.
📌 Government Policy & Population Growth: Policy changes and strong population growth are influencing housing and commercial development, creating potential shifts in property demand and investment strategies.
Investment Outlook:
With anticipated interest rate cuts, rising construction costs, and strong regional demand, the commercial property market presents significant opportunities for those seeking debt funding. Well-structured financing solutions and proactive financial management will be essential for navigating market shifts and maximising long-term asset value.
HMW Finance works closely with clients and lenders to provide complete debt advisory services so you can raise or manage existing debt and unlock opportunities for growth. Whether you need to refinance a loan, expand your working capital, fund a development, purchase equipment, acquire a home, business, or asset, we can help you explore various financing options available from a range of financiers.
