Commercial property transactions across Australia have continued to grow in 2024, driven by strong  investor confidence and the ongoing appeal of key asset classes. 

Burgess Rawson’s data found the average sale price for premium Australian commercial investment assets has increased by seven per cent in 2024, from an average sale price of $3.64 million to $3.9  million. 

The research shows that the 2024 market performance across key commercial property sectors in  Australia highlights robust trends, with positive shifts in yields, sales volumes and transaction numbers. 

This year is looking at surpassing Burgess Rawson’s $1.29 billion in transactions recorded in 2023 with  $1.25 billion already sold to date.  

We’re expecting the total tally to surpass $1.4 billion with average sale prices expected to further rise. 

The convenience retail sector has shown notable resilience, with yields stabilising at 6.38 per cent in  2024. Sales numbers climbed from 27 to 35, indicating consistent demand, while transaction volume  surged by over $45 million, from $132.7 million in 2023 to $178.2 million in 2024.  

This uptick suggests robust investor confidence, perhaps due to the essential service nature of fuel  stations and their consistent cash flow potential. 

For the fast food sector, yields have compressed the most, moving from 4.56 per cent to 4.32 per cent,  highlighting strong investor appetite and high competition for these assets. Sales volume grew  significantly from $70.5 million to $85.6 million, despite the transaction count holding steady at 16 for  both years. The current year is expected to see more sales pushing the 2024 total to over $100 million.  

The yield compression paired with a stable transaction rate indicates sustained demand for fast food  outlets, seen as recession-resistant and highly desirable assets. 

Our research shows that the childcare property sector demonstrated stability, with returns averaging  5.44 per cent—a reflection of recent market recalibrations. While sales volume reached $217 million  across 39 transactions so far in 2024, the sector is on track to surpass last year's total of $248 million. 

This year’s activity suggests a selective approach, as investors increasingly target high-quality, stable  locations within this essential asset class, underscoring its enduring appeal amidst evolving market  conditions. 

Yields for medical properties rose marginally and have now stabilised at around six per cent, with sales  volume nearly doubling from $112.2 million in 2023 to $178.8 million in 2024, while transaction  numbers remain steady at around 37. This significant increase in volume underscores growing interest  in the sector, fuelled by strong demand for healthcare services and the security of long-term lease  structures typical of medical facilities. 

Overall, the data points emphasise a nuanced market in which essential-service sectors remain highly  attractive, with strategic investor interest varying by asset type.