Albury Commercial Report 1st Half 2025
Located approximately 550km south-west of Sydney, the City of Albury is a local government area (LGA) in the Riverina region. It is a vibrant region that includes towns like Albury, Lavington, Thurgoona, and Hamilton Valley. The city of Albury features a diverse economy including agriculture, manufacturing, and retail industries.
Commercial Sales
In 2024, which for this report captures sales data between January and December, the median sales price was $1,618 per sqm. This a record high since 2020, reflecting a 39.1% price increase in the past 12 months. In this time, commercial sales declined by -36.4%, to only 7 sales, confirming an undersupply in the commercial market.
Since peaking at 16 sales in 2021, the number of commercial transactions has steadily declined each year. Per sqm prices have nearly doubled compared to 2021, creating a valuable opportunity for owners to capitalize on their investments.
Industrial Sales
The industrial sector recorded 14 transactions in 2024, with a median price of $2,357 per sqm. This represents a significant annual price growth of 28.3% compared to 2023, marking a record high for 2024. This is similar to the commercial market.
Industrial sales volumes also declined since 2021. While the market averaged 17 transactions per year between 2021 and 2023, only 14 sales were recorded in 2024. During this period, the median price per sqm has continued to rise, highlighting a highly competitive industrial market. There are only 5 industrial projects planned in the 1st half 2025, which will answer some of the demand. However, this is not enough, which suggests a further price increase is highly likely.
Commercial Leasing
The median net lease rate for commercial property in Albury was $160 per sqm in Q4 2024, This is a slightly lower price compared to the past 6 months (Q2 2024, at $186 per sqm) and 12 months (Q4 2023, at $209 per sqm). Leasing activity has dropped to a historical low, with only 1 lease recorded in Q4 2024. This aligns with a sharp drop in business confidence, to -3 index points in November 2024 and remained at -2 index points in December 2024. This underscores a broader shift towards a more cautious market sentiment and temporary softer conditions.
Industrial Leasing
There was only 1 industrial lease activity recorded in the Albury industrial market in Q4 2024, which, like commercial leasing; was the lowest recorded in the past 24 months. In contrast to commercial, the median net lease rate per sqm for industrial property was $120 per sqm as of Q4 2024, an annual growth of 32.9% compared to $90 per sqm in Q4 2023. This is also higher than Q3 2024, which commanded $113 per sqm.
This notable rise in lease rates can be attributed to a current undersupply, combined with a low number of industrial projects in the 2025 pipeline (when compared to the number of commercial projects planned). This intensified competition among renters, pushing up prices in Q4 2024.
Projects Development
Albury will benefit from an estimated $1.4B of planned projects, to commence construction in 2024-2026. 147 major projects are proceeding, which is 99.7% of the original pipeline. The majority planned key infrastructure projects, which will improve liveability for residents.
In 2025, total project value has increased across all sectors (compared to 2024), with infrastructure and mixed-use developments seeing the most significant growth. In terms of project numbers, the focus has shifted from infrastructure in 2024 (15 projects) to mixed-use in 2025 (32 projects). These projects enhance liveability for residents and attract more people to the area, ultimately driving higher demand for housing. Growth in the residential sector is high, from 4 to 16 projects in 2025, however most will supply vacant land lots. Thus, an undersupply in ready-to-sell stock remains.
