Real Estate Returns Rebound as Investors Shift from Caution to Confidence
Dexus Research sees renewed momentum across office, retail and industrial sectors as market sentiment improves.
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Australian real estate is showing signs of a comeback, with new data revealing accelerating returns across all major property sectors and improving investor confidence.
The latest Q3 2025 Australian Real Asset Review from Dexus Research highlights a positive shift in momentum, driven by falling interest rates, stabilising vacancy rates and renewed business sentiment.
The report suggests that the market may be transitioning from a period of “Fear of Acting Too Early (FATE)” to “Fear of Missing Out (FOMO)” as capital begins to flow back into real assets.
Unlisted property funds are leading the resurgence, posting their strongest returns in two years in June 2025, particularly in retail and industrial.
Dexus forecasts sector-wide returns exceeding 7% per annum within the next 12 months, buoyed by positive revaluations and rising deal activity.
In the office sector, the Sydney CBD appears to be entering a classic recovery cycle.
For high-quality assets, capitalisation rates are believed to have peaked, vacancy rates are levelling off, and rental growth is back on the rise. With demand strengthening and limited new supply, Dexus says this could mark a rare window of opportunity for investors.
Retail property is also showing signs of renewed strength, helped by real wage growth and declining mortgage rates. CBD vacancy rates have dropped and rents are firming, especially in regional shopping centres.
Meanwhile, infrastructure transaction volumes rose significantly in Q2 2025, with renewed focus on renewable energy and battery storage projects.
Government spending is playing a major role, with the Federal Government’s $60 billion infrastructure pipeline and various state initiatives expected to drive new project originations into 2026.
Overall business confidence is improving, even amid a sluggish broader economy. Falling inflation, political stability, and a rising equities market are contributing to stronger leasing expectations in the second half of the year.
“Global uncertainty continues to influence sentiment in capital and occupier real asset markets,” said Peter Studley, Dexus Head of Research.
“However, with interest rates falling and supply constrained, there are compelling reasons to expect stronger real estate returns in the months ahead. The big question is, how quickly will the tide turn from Fear of Acting Too Early (FATE) to Fear of Missing Out (FOMO) for real asset investors?”
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Now selling from Level 9, this new tower pairs skyline and Harbour Bridge views with the quiet of Ismay Reserve, and pricing from just $560,000 for one, two and three-bedroom residences.
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The skyline at Sydney’s Homebush is about to change, and The Maybelle is leading the charge.
The new residential tower has officially opened sales from Level 9, offering one, two and three-bedroom residences priced from $560,000, with move-in slated for late 2026.
What sets The Maybelle apart is its position. Residents on higher floors will wake up to sweeping city skyline and Harbour Bridge views.
The building overlooks the leafy calm of Ismay Reserve, giving owners the rare combination of a genuine outlook and a sense of green space, without compromising on either.
Location is doing plenty of the heavy lifting, too.
The Maybelle sits moments from the popular Homebush dining and lifestyle precinct, and is well connected to Strathfield, Sydney Olympic Park and the Sydney CBD, making it a strong option for buyers who want city access without giving up a slower pace at home.
For buyers considering their options in Sydney’s inner west, the appeal is straightforward: a genuine outlook, a connected address and an entry price that remains competitive for the location.
Registrations are now open for exclusive launch access. Get VIP access today.
Be the first to view floor plans, pricing, and availability before they are made public.
Register now at themaybelle.com.au or call 1300 066 292.
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