Goodman Group has emerged as a standout performer among Australian real estate firms, driven by its strategic focus on data centres amid surging demand fueled by the artificial intelligence boom. Hyperscalers like Amazon, Microsoft, and Meta have ramped up investments in these facilities, boosting Australia’s nascent but rapidly growing data-centre market. Goodman, the nation’s largest property developer, reported that data centres under construction account for 42% of its A$12.8 billion ($7.96 billion) development portfolio, up from 37% last year. This strong positioning has propelled its stock up by 45.8% in 2024, making it the top performer on Australia’s real estate index and setting it up for its best year since 2006.
Experts are divided on whether the rally will continue. While Goodman benefits from a robust development pipeline and prime land access, analysts like Morningstar’s Winky Yingqi Tan warn of potential risks, including high valuations, the threat of data-centre obsolescence, and increased competition. Despite these concerns, John Lockton of Sandstone Insights remains optimistic, citing continued CAPEX growth from hyperscalers and Goodman’s strategic land holdings as key advantages in sustaining its momentum.
