Property funds are one of the most accessible ways for Australian investors to gain diversified exposure to commercial property without the capital requirements of direct ownership. In 2026, with the SMSF residential borrowing ban reshaping capital allocation, property funds have become a critical part of the conversation for investors, accountants and financial advisers.

The Australian Property Fund Landscape

Australia has one of the world’s most developed property fund markets, with over $350 billion in assets managed across listed A-REITs, unlisted wholesale funds and unlisted retail funds. Major sub-sectors include industrial and logistics, retail, office, healthcare and residential.

Industrial Property Funds

The strongest performing sector over the past 5 years. E-commerce growth and supply chain localisation have driven record low vacancy rates. Industrial fund yields range from 4.5% to 7.5% gross.

Healthcare and Specialised Funds

Medical, childcare, aged care and social infrastructure funds offer some of the most reliable income in the property fund universe, backed by government-linked tenants on long leases. Yields range from 5.0% to 7.5% gross.

SMSF Property Fund Allocation in 2026

Financial advisers are increasingly recommending a split allocation across direct commercial property, property syndicates and diversified property funds. The optimal split depends on the SMSF’s size, member ages, income needs and risk profile.

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