SMSF lending for residential property is over. Can micro industrial fill the gap?

Stamp duty savings, higher yields and low maintenance costs make a compelling case. However many are questioning if buyers will make the switch and how much real demand is there for the asset class. Is this another bust looming large.

Over the past three years, around 24% of The Move's sales were to self-managed super funds (SMSFs).

Since 10 August 2026, limited recourse borrowing arrangements (LRBAs) entered into to purchase real property can only be used to acquire business real property (commercial or industrial). Existing SMSF residential property loans are grandfathered and an SMSF can still buy a house or apartment, but only with cash, and for nearly ever fund that rules it out. So no more sales.

For many agents, SMSF was a key part of the lead funnel: "Take back control of your money and prepare for retirement." Borrowing inside super let ordinary Australians hold a second investment property. That option has gone.

Borrowing for business real property has not changed, which puts micro industrial in front of the same buyers. Smaller warehouses suit trades, online retailers and other businesses that need space. SMSF investors are already looking: research from Money.com.au found 26 per cent intend to invest in commercial property through their SMSF, where borrowing remains available.

And on the surface it seems like a logical switch: Yields are generally higher than for comparable residential property. Maintenance costs are generally lower. Prices from around $117,000 to above $1 million let agents match a buyer's budget and intended use.

But the trade-off: the market for small industrial is smaller than for apartments, and a vacant warehouse can take longer to re-lease. With only about 700,000 micro businesses in Australia (businesses employing 1-4 people) vs 28 million people that need homes the demand side of the equation is as micro as some of the units.

For agents, that means picking locations really carefully, where oversupply in apartments can be 1,000 units for micro industrial 25 units can have the same impact.

But regardless of any downside, there are no other options and this is still a starting point for conversations across budgets, business needs and locations and still keeps the one in super one in your personal name alive.

The Move now has five projects, from Coburg in Melbourne's north, through Cheltenham and Mentone in the south-east, to Bendigo and Albury. Compact storage lots start around $117,000. Small-format spaces in Cheltenham start around $250,000 and regional warehouses around $300,000. Completed Coburg warehouses start at $716,000, and larger office warehouses in the range are priced above $1 million.

The Move also has finance available from multiple lenders.