Australia’s industrial, office sectors are top property calls this year

KEY institutional investors in Australia say that they are optimistic about the country’s property market, particularly the industrial and office sectors, amid a persistent supply crunch while foreign players continue to pump in funds.

“At the moment, what we’re seeing is chronic undersupply in nearly every sector in the last four or three years,” said Sean McMahon, chief investment officer (CIO), Charter Hall, at last week’s Private Equity Real Estate (PERE) Asia Summit 2025 in Singapore.

With A$83.4 billion (S$69.7 billion) of property funds under management (FUM), Charter Hall invests in sectors including industrial and logistics, office and retail in Australia. McMahon is particularly upbeat about the outlook for the industrial sector, projecting annual returns of up to 13 per cent for one of Charter Hall’s bigger funds.

The optimism in Australia’s property market is spurring a flurry of transactions, he added. Charter Hall raised about A$1.6 billion in the past six months, half the length of time it used to take.

Interest from global investors who see Australia as a safe haven is also brightening the appeal of its real estate market, he noted.