If you had to guess which property sector delivered the strongest returns in Australia over the past two decades — would you say residential? Maybe industrial? Most people guess wrong.
Here’s what the data from 2005 to 2025 shows about long-term property performance:
🥇 1. Agricultural Land
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✅ Total Growth: 256%
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✅ Annualised Return: ~6.7%
Quietly outperforming the rest, agricultural land has benefited from global food demand, supply constraints, and institutional investment. It’s been a consistent winner in terms of capital growth.
🥈 2. Industrial Property
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✅ Total Growth: 164%
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✅ Annualised Return: ~5.0%
Warehouses, logistics hubs, and supply chain facilities have boomed, driven by e-commerce and infrastructure upgrades in cities like Sydney, Melbourne, and Brisbane.
🥉 3. Residential Property
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✅ Total Growth: 154%
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✅ Annualised Return: ~4.8%
Still strong, but no longer leading. Residential remains a reliable option, but it’s no longer the fastest-moving asset class over the long term.
🏢 4. Office Property
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✅ Total Growth: 143%
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✅ Annualised Return: ~4.6%
Office real estate has faced headwinds, especially post-COVID, with hybrid work reducing demand and increasing vacancies in central business districts.
💡 What Does This Mean for Property Investors?
The best-performing property types in Australia over the last 20 years weren’t the ones most investors expect. If you’re only focused on residential or office, you might be missing major opportunities in agriculture, industrial, or commercial development.
Smart investment decisions require smart funding — that’s where Formation Finance can help.
🔑 Flexible Finance for Commercial and Development Projects
Whether you’re purchasing land, funding a construction project, acquiring a warehouse, or refinancing a commercial property, we provide fast, tailored lending solutions:
✔️ Private Lenders Loans
For time-sensitive or non-bank deals — fast approvals, minimal documentation, and flexible structuring.
✔️ Commercial Property Loans
Finance for office, retail, industrial, and mixed-use properties. We work with major banks, second-tier lenders and private capital.
✔️ Property Development Loans
From land acquisition to construction and residual stock finance, we support developers with structured lending that keeps projects moving.
🚀 Ready to Capitalise on the Next 20 Years?
Formation Finance is your partner for commercial, development and private lending solutions — with deep industry knowledge and fast execution.
🔗 Contact us today to discuss your next property opportunity.
