How State Property Tax Surcharges Are Creating Golden Opportunities for Local Investors

With property tax surcharges pushing foreign investors away from commercial real estate in Victoria and Queensland, Australian-based investors are finding themselves in a favourable position. For once, it's local capital that’s leading the charge — and savvy investors are stepping in.

Victoria’s 4% foreign ownership surcharge and Queensland’s additional 3% are increasingly deterring offshore investors. These surcharges, coupled with rising statutory land valuations, are eroding foreign yield returns and forcing many to reconsider their exposure to Australian commercial property. While some international buyers are shifting to jurisdictions like New South Wales and Western Australia — where taxes are lower or non-existent — others are exiting the market altogether.

This retreat is not without consequence. A thinning pool of offshore capital is leading to softer asset prices, especially in the land-rich industrial sector, which has borne the brunt of these tax changes. The result? Prime assets are coming to market at discounted rates, often with little competition — a rare dynamic in Australia's typically competitive commercial real estate scene.

Fund managers like Richmond Bridge and Quintessential Equity are capitalising on this shift. Richmond Bridge, for instance, has launched a $200 million fund — backed by $150 million in equity — to acquire commercial assets in Melbourne and Brisbane. These are markets where long-term fundamentals remain strong, but short-term pricing is under pressure due to foreign capital withdrawal.

As Peter Wylie of Richmond Bridge points out, foreign tax surcharges can slash yields by up to 1% annually, effectively diminishing the attractiveness of what are otherwise strong assets. For local investors, however, these very tax policies are opening the door to acquisitions that previously would have been snapped up by global funds.

Institutional capital is becoming more calculated. Foreign buyers are either pulling out or restructuring — often partnering with local managers or exploring development-stage opportunities — to stay in the game without bearing the full tax burden.

For domestic investors, the message is clear: this is a once-in-a-cycle moment to invest in premium commercial real estate with less competition and more favourable pricing.

Why Renown Lending Is the Perfect Partner

At Renown Lending, we understand the importance of timing in real estate. Our team specialises in structuring private credit solutions for local investors ready to capitalise on these shifting market dynamics. Whether you're acquiring land-rich industrial assets or refinancing a commercial portfolio, we provide fast, flexible funding backed by property — without the red tape of traditional banks.

We work closely with developers, syndicates, and family offices to provide tailored finance solutions ranging from $250K to $30M, with options across first and second mortgages, bridging finance, and development funding.

If you're considering entering the market while prices remain discounted, we’re here to help you move quickly and strategically.

Ready to Invest While the Market’s in Your Favour?
Contact Kalpi Prasad and the team at Renown Lending today to explore how private credit can power your next acquisition. Timing is everything — and your window is now.