Auction clearance rates across Sydney, Melbourne and Brisbane have fallen to multi-year lows—37.9%, 43.7% and 22% respectively—pointing to weakening momentum in residential markets.
Caution is rising on both sides of the transaction, with buyers and vendors weighing macro uncertainty and potential tax changes.
Capital, however, is not retreating—it’s rotating.
Melbourne-based property strategist Paul Huggins says investor demand is shifting toward positively geared industrial assets, where yield and cash flow are reasserting priority over capital growth.
His Moorabbin development, Keys101, adopts a “store, work and play” model—smaller-format industrial units designed to optimise land use and mitigate land tax exposure.
With price points between $600,000 and $1 million, the product is resonating with SMSF investors, particularly given gearing capacity of up to 80%.
In a notable move, a major bank is underwriting investor loans for the project—lowering entry friction and accelerating uptake.
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