A quieter development pipeline could create rare openings for commercial property buyers next year.
With construction costs high and fewer new projects getting off the ground, Knight Frank expects the east coast development pipeline to fall by roughly 30% in 2026.
That means less new supply, fewer competing buildings and stronger support for rents in existing assets – especially those in high-demand locations. And several markets are entering the early stages of recovery.
Where momentum is already showing
- Brisbane and Adelaide prime assets are recording rental growth despite high broader vacancy.
- Owners in Sydney CBD core are becoming reluctant to sell, anticipating a recovery.
- Investors may shift toward markets that haven’t fully rebounded yet, creating a narrow window for early movers.
This is shaping up to be a recovery led by quality and scarcity, not broad uplift.
How lenders respond when markets tighten
Lenders tend to respond positively to assets with stabilising rents, firm tenant demand and limited new supply. As certain sectors tighten, financing terms may become more flexible for borrowers targeting these markets.
If you want clarity on which assets lenders are warming to – and how that shapes your borrowing capacity – I can step you through it.
