Issue 55 | The Property Development Review

National News

Q2 2024 SNAPSHOT: AUSTRALIAN ALTERNATIVES - LIVING, SOCIAL INFRASTRUCTURE,AND INFRALITE SECTORS

Cushman & Wakefield has released their first quarterly Australian Alternatives Snapshot, highlighting key trends across the living, social infrastructure, and infralite sectors.

$1,000

$900

$800

$700

ALTERNATIVES TRANSACTIONS 2024

$600

$500

$400

Source: Cushman & Wakefield Alternatives Research * Note this chart reflects transactions involving outright purchases or sales of assets with AUD $5m and above.

$300

$200

$100

$0

The first half of 2024 has seen many investors maintain a strong focus on alternative real estate strategies, with total investment volume reaching approximately ~$3.0 billion. However, transaction volumes have remained relatively subdued due to mixed economic signals contributing to a cautious market environment. Despite robust sector fundamentals across alternatives, challenges such as lower liquidity and infrequent pricing benchmarks continue to slow capital deployment in an already uncertain environment. Like other sectors, the gap between buyer and seller pricing expectations remains a significant hurdle, though recent months have shown preliminary signs of narrowing.

16 – August / September 2024

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