The NSW Government’s 2025–26 Budget signals a major shift in the state’s commercial property market, with strategic infrastructure investment and planning reforms poised to drive decentralised growth beyond traditional CBDs.
Ray White Group Head of Research Vanessa Rader said the $30.8 billion infrastructure commitment is set to create new commercial nodes across Western Sydney.
Projects like the $5.5 billion roads package and the $123.6 million Aerotropolis development will shift demand toward transport-oriented and mixed-use precincts.
“The government is actively repositioning commercial value away from traditional business centres,” Ms Rader said.
“Transport investment, health and education infrastructure, and innovation precincts will redefine where and how commercial property is developed.”
The Budget also includes $79.2 million for an Innovation Blueprint and $38.5 million for the Tech Central Hub — investments designed to attract knowledge-based industries needing flexible, tech-enabled space.
Meanwhile, the newly announced Investment Delivery Authority will fast-track non-residential projects over $1 billion, with the potential to unlock up to $50 billion in commercial investment annually.
A standout measure is the $1 billion Pre-Sale Finance Guarantee, an Australian first. Under the scheme, the state will guarantee pre-sales on up to 5,000 apartments, helping developers secure finance to build an estimated 15,000 homes over five years.
Treasurer Daniel Mookhey called it “a canny use of our state’s balancing sheet,” aimed at overcoming feasibility challenges that have stalled construction across NSW.
“Industry can spend less time and resources having to convince their banks that there are buyers of these apartments and more time building them,” he said.
While some housing advocates have questioned the scale of the scheme, the Property Council of Australia welcomed it as a pragmatic response to industry feedback.
Executive Director Katie Stevenson told ABC News, “We must try new things. And this is a great example of the Minns government responding directly to the challenges that industry have raised.”
Ms Rader also noted the increasing relevance of creative and mixed-use commercial formats, supported by $586.2 million in creative economy funding and the potential of the pre-sale guarantee to activate integrated, shop-top developments.
Additional commitments include $12.4 billion in health and $10.4 billion in education infrastructure, expected to create stable commercial demand near new precincts in Bankstown, Westmead, Rouse Hill and Wollongong.
The Budget delivers these growth initiatives while reducing state debt by $9.4 billion, enhancing fiscal confidence for long-term investors. Treasury now forecasts a return to surplus by 2027–28, though the treasurer cautioned, “a lot needs to go right for us.”
