Insights H1 2026 | 11 Mark Ammoun of Commercial Bankstown says while industrial property across Southwest and Western Sydney continues to demonstrate underlying strength, momentum has eased following recent interest rate increases. “The rate hike had an immediate impact, -with a reduction in qualified enquiries, as buyers and tenants became more cautious.” Market expectations have also shifted significantly over the last 12 months. “Where interest rate reductions were once anticipated, rates have now increased and are widely expected to rise further. “This change has affected investor confidence, with higher borrowing costs now factored into acquisition decisions.” “Investors are increasingly focused on income stability and risk management, placing greater importance on sustainable yields and realistic pricing aligned with the interest rate environment.” Transaction activity hasn’t slowed, but buyer depth has thinned. “We’re seeing fewer participants, with active buyers more selective,” Mark says. “As a result, decision-making timeframes are longer, with more due diligence and measured negotiations.” While conditions remain more restrained than in previous years, industrial sector fundamentals remain intact. “For buyers and occupiers prepared to adapt to the current environment and take a longer-term view, opportunities continue to present themselves.” Mark Ammoun m.ammoun@rhc.com.au Bankstown Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook For more information, contact: Office Industrial Retail Rents p/m² $250-$320 $200-$300 $400-$700 Vacancy 6-10% 1.5% 7% Yields 6-7% 4-5% 7% Rates p/m² $3,000-$6,500 $4,000-$7,250 $5,500-$13,000 Current market conditions $3,608,000 752 Parramatta Road, Lewisham Recent Notable Transactions SOLD $494,000 p.a. Building 1 - 120-122 Warren Road, Smithfield LEASED
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