Dexus Research: Australian real estate enters upturn, returns to 7-9%

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The return of returns. Dexus Research has released the Q4 2025 Australian Real Asset Review (ARAR), confirming Australian real estate is entering a definitive cyclical upturn – seen only twice in the past 35 years. “Australia’s economy is entering a phase of cautious optimism. Compared to two years ago, we now have higher initial yields, firmer demand and a looming shortage of new supply – setting the stage for a positive trajectory,” says Peter Studley, Head of Research. In what Peter has coined ‘the return of returns’, he anticipates that all major real estate sectors will be reporting returns in the 7% to 9% range over the next 12 months. Key insights from the ARAR: ➡️Office: Premium leads the pack. Demand is up, vacancy is down, and limited new supply is pushing top-tier space ahead. ➡️Retail: resilient and ready. Retail posted a 7.8% return, with lifestyle centres riding the wave of strong consumer spending. ➡️Industrial: quality wins. Prime assets are outperforming as speculative supply slows and pipelines tighten. ➡️Growth markets: Infrastructure & Healthcare. Infrastructure returns are surging, led by energy and digital assets. Healthcare is gaining traction, with a private hospital capacity gap driving long-term demand. And one more thing… This is Peter’s final ARAR after 25 years of market insights. A fitting forecast to finish on. Read the full Q4 2025 ARAR here: https://ow.ly/CC4550XeJtG #DexusResearch #RealAssets

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Stephen Rich

Head of Capital at EG | Real Estate Capital Markets | Strategic Institutional Investments

1mo

Congratulations on an outstanding career, Peter - as impressive for its insight as its longevity. All the best with the next chapter!

Kevin Stanley

National Director, Property Market Economics, Insights & Research at Commonwealth Bank (Business Bank)

2w

Nice reflection, Peter. Well done.

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