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The state of Australia's CRE market
Australia’s commercial real estate market has weathered its share of challenges in recent years, from the disruptive forces brought about by the COVID-19 pandemic to shifting workplace dynamics and rising construction costs. Through all of this, interest rates remain a critical lever in unlocking investor sentiment and transaction volumes.
Reduced borrowing cost traditionally stimulates property activity by making financing more affordable. For developers and buyers alike, lower interest rates can:
- Improve access to capital
- Boost investment yields relative to other asset classes and
- Reduce the cost of carrying debt on existing properties
This could be the catalyst many within CRE have been waiting for, especially in sectors like industrial, logistics and value-add office space, which continue to draw long-term interest.
As confidence rebuilds and more deals start flowing, both buyers and sellers will be navigating a busier and more competitive market. But with opportunity comes risk. In property transactions, risk often lies in the complexity of title, encumbrances, breaches of easements and covenants, outstanding planning obligations, and other key risk factors tied to a property.
These issues, if left undiscovered or unresolved, can result in significant delays, financial loss or legal disputes, potentially undermining what might otherwise seem like a strong investment or smooth sale.
Title insurance: mitigating risks in CRE transaction 
Title insurance can be used as an important risk-management tool for those buying, selling and lending against CRE.
DUAL’s Title Insurance product protects buyers and lenders from certain hidden or unknown defects in title or other issues that may not be discovered before settlement, including:
- Unregistered interests or rights affecting the land, including ownership of the land
- Existing breaches of covenants, easements or other title restrictions
- Illegal building works
- Certain planning breaches and/or unfulfilled historical planning obligations
- Existing boundary encroachments (and resulting boundary disputes)
- Fraud, forgery or identity theft impacting an insured’s title
Title Insurance can also be used by sellers to address certain known issues. By simultaneously ring-fencing potential liabilities or losses, it can help to achieve the highest possible sale price and facilitate a smoother transaction process.
In a market poised for a rebound, the pace of activity can sometimes exceed the pace of due diligence. DUAL’s Title Insurance can help complement pre-acquisition due diligence and act as a critical safety net.
If interest rates continue to trend downward, 2025 could be a pivotal year for CRE in Australia. Whether you're a seasoned investor or developer, a business owner seeking premises, or a seller capitalising on market conditions, mitigating risk should remain at the forefront of every transaction.
With capacity up to USD 150 m per asset/transaction, DUAL’s Title Insurance can help provide peace of mind in uncertain times, making it a smart addition to any strategic real estate decision.
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This is only intended to be a highlight of the cover available and acts as a guide. Coverage terms and conditions apply. Before buying a policy, consider if the product suits individual needs by reading the Policy Wording, a Product Disclosure Statement (PDS) and Target Market Determination (TMD) (where available) in light of individual circumstances.