Albury Commercial Report 2nd Half 2025

Commercial Sales

In 2025, which for this report captures sales data between 1st January – 30th June, there were 6 commercial sales. The median sales price was $3,321 per sqm in 2025, a 2.9% increase in the past 12 months. Prices have more than tripled since 2021, highlighting strong opportunities for owners to capitalize on their investments.

The number of commercial sales has risen slightly from a five-year low of 5 in 2024, reflecting a modest recovery amid persistent undersupply. Sales remain well below the 2021 peak of 16 transactions, when activity was at its highest.

Industrial Sales

Industrial activity was very low in the first 6 months of 2025, with only 4 recorded sales. The median price per sqm was $1,435, a significant decline compared to 2024. That said, in 2024 there were two transactions – 18 Cerese Drive Thurgoona ($6,201 per sqm) and 29 Ruby Court East Albury ($4,369 per sqm) – which drove up prices.

In comparison to 2023 prices, 2025 prices are on par; and have tripled since 2021 and 2022. Sales volumes have also declined significantly since 2021. It was averaging 17 sales per annum between 2021 and 2024, now only 4 in the 1st half of 2025.

Commercial Leasing

The median net lease rate for commercial property in Albury was $250 per sqm in Q2 2025, reflecting a 36.7% increase in the past 6 months (Q4 2024, at $183 per sqm) and a 34.4% increase in the past 12 months (Q2 2024, $186 per sqm). Over the same period, leasing activity dropped to a historical low, with only 5 leases recorded in Q2 2025. In comparison, the average quarterly leasing volume over the past 18–24 months was 11 leases. This suggests a clear undersupply in the commercial leasing market.

Industrial Leasing

Albury’s median net lease rate per sqm for industrial property was $110 per sqm as of Q2 2025. This is a relatively stable market compared to the previous quarter (Q1 2025, at $111 per sqm) and on a 12-month basis (Q2 2024, at $123 per sqm). Industrial leasing activity has declined, with only 4 leases recorded in Q2 2025. This is half the number of leases in the past 12 months (8 in Q2 2024), reflecting cautious business sentiment in the small-scale industrial market.

The number of industrial leases in Albury has remained relatively stable in the past 24 months, on average sitting at 5–6 leases. That said, the median lease price has also remained relatively stable at $100–$120 per sqm, which suggests an overall resilient industrial leasing market.

The average days to let a leasing space declined in the 12 months to Q2 2025, falling significantly by -29.2% for commercial properties (to 46 days) and slightly by -2.1% for industrial properties (to 47 days). This confirms there is a highly demanded leasing market, particularly in the commercial sector.

Projects Development

Albury will benefit from an estimated $1.33B of planned projects, to commence construction in 2024–2026. 170 major projects are proceeding, which is 99.0% of the original pipeline. The majority are planned key infrastructure projects, which will improve liveability for residents.

There is a shift in development focus from infrastructure ($183.4M) in 2024 to mixed-use projects ($64.1M) in 2025. These projects enhance services, create jobs, and attract more residents, ultimately driving stronger housing demand. Residential projects were the smallest segment in both value and number in 2024, but the sector recorded strong growth in 2025; rising from 4 to 10 projects ($28.6M). However, as most of these projects will deliver land lots that require time to develop, the lack of ready-to-sell stock persists – thus placing more pressure on property prices.

In the 2nd half 2025, construction is set to commence on a total of 50 projects, which includes: 14 commercial, 9 industrial, 7 infrastructure, 12 mixed-use, and 8 residential developments. Key residential projects include Hilltops by Birchmore Estate Subdivision Works ($8.9M, 198 lots) and 513 Wagga Road ($1.4M, 4 dwellings), the only project building stand-alone houses. With 95% of projects supplying land lots, demand for ready-to-sell housing stock remains unmet in Albury.

Other key projects due to commence in the 2nd half 2025 include, but not limited to:

• 606 & 606B Dean Street Apartments & Commercial ($5.3M) – A five-storey building with 10 apartments (1, 2 and 4 bedrooms) and commercial space
• Hume Country Retirement Resort Stages 6 & 7 ($1.5M)
• 520–524 Smollett Street & Selle Lane Commercial Building ($1.4M)
• Albury Animal Centre Redevelopment ($4.5M)
• 200–208 North Street Warehouses Stages 1 & 2 ($6.9M)
• 34 Mclaurin Road Building ($2.9M)

Only 9 industrial projects are planned for the 2nd half 2025, which compared to 2023 and 2024 sales numbers suggests a potential undersupply.