Australia’s TikTok landscape is undergoing a demographic transformation with implications extending far beyond social media into commercial property markets.
With 8.5 million active users spending 1.5 hours daily on the platform (more time than any other social media app), the Australian market is positioned to follow the demographic maturation patterns already evident in the United States, where TikTok’s user base has fundamentally shifted from teen-dominated to multi-generational.
The demographic evolution is striking when compared to US trends. While Australia’s TikTok user base remains dominated by 18-24 year-olds, American data reveals a dramatic shift with users aged 45-54 surged from 8 per cent to 13 per cent between 2022 and 2024, while those 55+ jumped from 9 per cent to 14 per cent.
Most significantly, the traditionally dominant 18-24 cohort actually declined from 35 per cent to 25 per cent, with 25-34 year-olds now representing the largest segment at 35 per cent.
This demographic inversion suggests Australia is approximately 1-2 years behind a similar transformation that will fundamentally alter how businesses approach their physical spaces and customer engagement strategies.
What makes this demographic shift particularly significant for Australian commercial property is the engagement intensity. Australian TikTok users average 26-minute sessions and return to the app multiple times daily, with over 90 per cent being repeat users according to Data AI.
When this level of sustained attention combines with the higher spending power of mature demographics it creates a powerful convergence of discovery behaviour and purchasing capacity that retail and commercial property must prepare to accommodate.
The engagement patterns reveal interesting nuances about Australian user behavior. While Australians spend 38 hours and 51 minutes monthly on TikTok (well ahead of the worldwide average of 34 hours and 56 minutes, ranking 17th globally), they open the app just 304 times per month compared to the worldwide average of 358.7 times.
This suggests Australian users have longer, more intentional sessions rather than quick, frequent check-ins, indicating a more mature engagement pattern that could accelerate as demographics shift toward older users who typically prefer deeper, less fragmented content consumption.
The commercial property implications are already emerging. E-commerce activity through TikTok is rising rapidly in Australia, with 38 per cent of users willing to view ads in exchange for free services. This creates a direct link between social media discovery and purchasing behaviour that physical retail spaces must accommodate.
Shopping centres and retail developments that can bridge this digital-to-physical journey will capture disproportionate value as traditional retail tenant strategies require complete reconsideration.
The platform’s music-driven trends and local cultural hashtags suggest retail spaces need to become more experience-focused and socially integrated.
When demographics mature to match US patterns, Australian shopping centres focused purely on younger audiences may miss their largest potential market segment, the 35-54 age group with higher disposable income and established purchasing power.
This demographic evolution aligns with expectations that retail will be the standout commercial property performer, with assets delivering strong returns and representing 41.1 per cent of all commercial transactions.
The implications for tenant mix are profound. Healthcare facilities could see accelerated demand as TikTok users discover wellness content and seek corresponding physical services.
The platform’s popularity for educational and informative content means neighbourhood centres anchored by health services and lifestyle brands are gaining increased relevance.
Food and beverage operators leading retail’s revival must adapt to serve both digital natives and social media-engaged older consumers, while service-based tenants offering consultations, treatments, or experiences that complement online discovery are becoming premium prospects for landlords.
Perhaps most significantly, over 350,000 Australian businesses now use TikTok, representing a massive shift toward social media-integrated commerce.
This business adoption rate suggests emerging demand for commercial spaces that can accommodate content creation, live streaming, and social media integration alongside traditional retail functions. The creator economy is maturing rapidly, with influencers commanding high rates for major campaigns, indicating demand for professional infrastructure.
The 41.5 per cent penetration rate among social media users suggests this isn’t niche demand, it’s becoming mainstream business infrastructure.
For retail landlords, this creates multiple revenue opportunities. Content creation studios can command premium rents while serving multiple tenants.
Pop-up spaces designed for viral marketing campaigns offer flexibility and higher turnover rates. Traditional retail spaces with built-in streaming capabilities, professional lighting, and social media optimisation become more attractive to tenants who understand omni-channel retail.
The opportunity extends beyond pure content creation facilities. With Australian users actively engaging with branded content and local trends, retail spaces need dynamic adaptability. QR code integration, in-store social media experiences, and livestream shopping events are shifting from novelty to necessity. Service stations could capitalise by creating social media-friendly spaces that encourage longer dwell times during EV charging, while traditional anchor tenants may need to adapt their physical spaces for social media integration.
Australia’s current position of high engagement, growing business adoption, but still demographically young, represents a strategic opportunity.
Commercial property investors and developers who prepare for TikTok’s demographic maturation before it fully arrives can capture first-mover advantages. As the platform evolves toward the US model of broader age engagement, Australian retail and commercial property positioned for this shift will benefit from both higher spending power demographics and established social media integration capabilities.
