For most of the past decade, the conversation about property investment in Australia has been almost exclusively about residential. Houses. Apartments. Off the plan. First home buyers. Investors chasing rental yield in growth corridors.
The 2026 budget changes have shifted that conversation.
With negative gearing restricted on established residential properties purchased after Budget night on 12 May 2026, a cohort of investors who previously would have entered the residential market has started looking at alternatives. And one of the most compelling alternatives, particularly in Western Sydney, is strata industrial.
The 2026 budget restricted negative gearing on established residential properties. New builds retained full negative gearing. But for investors who were targeting established residential, the majority of the investment market, the tax environment changed materially overnight.
Losses from established residential investments can now only be offset against other property income, not against wages or other income. For investors in higher marginal tax brackets who relied on the negative gearing tax benefit to make the numbers work on residential investments, that change has materially reduced the attractiveness of established residential relative to alternatives.
Industrial property, specifically strata industrial in supply-constrained precincts, was already performing strongly before the budget. The capital rotation from established residential toward alternatives has added further demand to a market that was not short of it.
Coposit | Buy with $10K | Off the plan Industrial | Invest in Storage Units in NSWMinchinbury Business Park | Off the plan industrial | Secure with $10k and $674 x 104 weeks
Western Sydney is Australia's third largest economy. The combination of Sydney's major motorway network, the M4, M7, M2, and the newer WestConnex and M8, with the expansion of Western Sydney Airport at Badgerys Creek has created one of the strongest industrial demand environments in the country.
Businesses that need logistics, warehousing, manufacturing, and distribution capacity in Western Sydney face a market where industrial vacancy rates are near record lows and rents have grown faster than almost any other commercial property type over the past five years.
The supply constraint is structural. Industrial land in Western Sydney is finite and genuinely scarce relative to demand. New developments sell out quickly. The pipeline of future supply faces planning, construction, and cost headwinds that constrain how quickly new stock can be delivered.
For investors seeking exposure to that demand environment, strata industrial, owning individual units within a larger facility, provides the most accessible entry point.
Minchinbury Business Park at 7 Sterling Road, Minchinbury offers premium strata titled warehouses in one of Western Sydney's key industrial precincts, with direct access to the M4 Motorway.
Units from 97sqm to 121sqm. High clearance warehouses. Concrete mezzanine to each unit. Automatic roller door. Three phase power. Kitchenette and fully tiled bathroom. NBN high speed internet. Secure 24/7 gated estate with CCTV. Wide driveways with full drive-around vehicle access.
From $800,250. Construction has commenced. Delayed settlement until Q2 2027 gives investors additional time before the settlement obligation arrives.
Through Coposit, Minchinbury Business Park can be secured with $10,000 upfront and $674 weekly over 104 weeks.
For investors comparing Western Sydney industrial with Stack Works Mascot in South Sydney, Minchinbury offers a more traditional warehouse configuration in an established Western Sydney industrial precinct. Stack Works Mascot offers a wider range of product types, from 22sqm storage units to 952sqm showrooms, with superior transport connectivity to the airport, port, and CBD.
Full negative gearing applies to new strata industrial purchases. Higher depreciation deductions apply to new construction than to established commercial stock. Industrial rental yields in supply-constrained Western Sydney precincts have historically outperformed residential yields in comparable markets.
The combination of the budget environment, the supply constraints, and the structural demand from Western Sydney's logistics and manufacturing economy makes strata industrial one of the more complete investment propositions available to individual investors in 2026.
For investors whose interest is primarily residential, the Coposit platform continues to offer off the plan residential listings across NSW, QLD, and WA with full negative gearing on new builds.
Browse Minchinbury Business Park, Stack Works Mascot, and all current Coposit listings on the projects page, download the app, or contact the team to understand which investment structure suits your goals.
This article is general information only and does not constitute financial or investment advice. Always seek independent financial advice before making any investment decisions.
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