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Beyond bricks and mortar: why smart investors diversify in real estate

With the RBA cutting the cash rate for the first time in four years this week, there’s been chatter among investors around the right time to enter the market.

Timing is important, but so too is choosing what assets to focus on.

A property portfolio that includes both commercial and residential assets can help investors minimise their risk to external economic, legislative and social influences. At the same time, having a foot in both camps ensure investors can take advantage of external factors that may benefit one asset class over another.

For instance, residential investing is largely driven by population growth, employment, affordability and, of course, interests.

Queensland has long enjoyed strong migration flows from southern state residents. Numbers accelerated during Covid, when 135,000 people – around the population of Mackay and surrounds – arrived. Investors enjoyed an uptick in demand, with rents and values soaring.

Brisbane has overtaken Melbourne in several investor metrics, as a result:

*Source: CoreLogic Market Trends Report February 2025

Equally, housing is a hot topic in the corridors of power, attracting the attention of lawmakers. For instance, rents in Queensland cannot be increased unless it has been at least 12 months since the current amount of rent became payable.

On the commercial side, the market responds to business confidence, industry growth, and infrastructure investment.

Upgrades of the Port of Brisbane and the opening of the Gateway Motorway helped create around 50,000 jobs, placing demand on warehouses through the Trade Coast’s industrial corridor. Along with the rise of storage for e-commerce solutions, substantial rental growth and increases in values have occurred.

Commercial landlords typically enjoy higher rental yields and longer lease terms than their residential counterparts.

While Covid was a boon for residential landlords, the work from home movement – which still lingers today – caused a restructure of the office market with some businesses moving to a hot-desk format that reduces the amount of floor space they lease.

At Bromley Real Estate, we have specialists – not generalists – working in the separate divisions of commercial asset management and residential property management.

Managing a diversified portfolio requires expertise in both sectors as each has its own regulations, lease structures, and tenant expectations.

Our team members ensure compliance with all legislative requirements while maximising occupancy and returns. Investors benefit from a streamlined management process where our residential and commercial specialists collaborate for an integrated service offering. We’re proud that our clients have entrusted us to manage all components of their property portfolio.

By diversifying property holdings and working with a management team experienced in both residential and commercial assets, investors can build a resilient portfolio that adapts to market changes.

Talk to our team at Bromley Real Estate today about opportunities and our services across both residential and commercial property.

*This article is general in nature and should not be read as financial advice. Readers should consult their financial planner, accountant and other advisers for personalised advice before making any investment decisions.

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