Service stations are proving to be a strong investment and will remain essential infrastructure for years to come, largely driven by the rise of electric vehicles (EVs).
Despite economic pressures, the sector has demonstrated resilience, attracting investors due to reliable income streams and its evolving role in EV charging. Rising EV adoption has highlighted the challenges of home charging, as about 30% of Australians lack dedicated parking, reinforcing the importance of service stations.
In 2024, EVs accounted for 9.65% of new car sales in Australia, up from 8.45% in 2023. Around 114,000 battery electric and plug-in hybrid vehicles were sold, reflecting growing demand. However, Australia still lags behind other developed nations in EV adoption, necessitating further investment in infrastructure and policy support. The New Vehicle Efficiency Standard (NVES), introduced in 2024, is a step towards cleaner transport, but additional incentives and consistent policies are needed to accelerate progress.
Major service station operators are adapting by incorporating EV charging while maintaining traditional fuel sales. This dual-purpose model has sustained revenue and strengthened customer engagement. In 2024, service station transactions reached approximately $750 million, with yields between 4.5% and 9%. Private investors continue to see opportunity, with an average purchase price of $4.6 million, though value varies by location and profitability.
The structural challenges of home charging are unlikely to be resolved soon, further cementing the strategic importance of service stations. Properties in high-traffic locations with ample retail space and EV infrastructure are particularly attractive to investors. With interest rates expected to ease in 2025, demand for these assets is likely to grow.
Australia’s EV transition remains uneven, with some states discontinuing purchase incentives while others maintain or extend them. The ACT aims for 100% EV sales by 2030 but has ended its free registration and stamp duty exemptions.
With evolving policies and persistent home-charging limitations, service stations are set to remain a critical component of Australia’s transport network for the foreseeable future.
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