Big screens and big returns: Investors eye off cinemas
Australians are returning to the big screen after the COVID lull and amid ongoing competition from streamers, sparking renewed interest in cinema assets as resilient commercial properties.
According to the Digital Cinema Report, the Australian box office grew by almost 8 per cent in the first seven months of 2025, climbing from $563.2 million to $607.7 million. In 2024, there were 49.6 million admissions into cinemas Australia-wide, according to Screen Australia’s Industry Trends data.
As audiences crave immersive experiences that take them out of their homes, cinemas are once again finding their footing as social and cultural hubs. For investors, that renewed appetite translates into stable foot traffic and long tenancies – an appealing combination.
A steady performer in a changing landscape
Unlike standard retail or office space, a cinema’s value lies in its ability to activate surrounding precincts after dark, generating flow-on benefits for nearby restaurants, bars and local retailers. It’s entertainment at its best, allowing the population to experience a true “night out”.
Major operators such as HOYTS, Event, Village Cinemas, and Palace dominate the market and have millions invested in their venues across the country. While COVID and streamers may have swayed their branches, these operators held firm and have benefited from their commitment to the market, with Screen Australia’s industry insights showing that theatres across the country went from 524 total in 2019 down to 456 in 2024, which isn’t a drastic loss considering the circumstances of COVID and welcoming new streamers to the market.
What’s for sale right now
Several cinema-based investments currently for sale highlight the scope of opportunity, from trophy metro assets to regional hubs that double as community hangouts.
Paddington, Sydney
In Sydney’s inner east, the historic Verona Cinema site on Oxford Street is being reimagined as part of a mixed-use project that will feature a four-screen venue alongside 53 apartments and retail.
The redevelopment signals how the modern picture house is evolving into an integral piece of lifestyle infrastructure. Rather than a standalone theatre, it will anchor an activated residential and retail precinct that blurs the lines between entertainment and living.
Nelson Bay, NSW
At 11–45 Donald Street, Nelson Bay, a long-running local cinema is being sold. The property includes the fitout and parking and sits in the heart of the popular Port Stephens township. With the area’s steady tourism trade and year-round population growth, the property offers an income-producing asset in one of the state’s most reliable leisure markets.
No. 2-6 Cronulla Street presents a fully-leased investment anchored by HOYTS Cinemas. The building spans more than 2600 square metres and generates a net passing income of about $1.56 million a year. Surrounded by busy retail and dining, it’s the archetypal set-and-forget cinema asset, pairing yield security with brand strength in a high-demand coastal suburb.
Queensland’s 3/82 Monkland Street offers the only cinema complex in the town of Gympie. The 608-square-metre property returns a net income of $84,940 per annum and is leased until December 2028, with a further five-year option. Fixed 2 per cent annual increases and a captive local audience make this a defensive, entry-level investment for those seeking exposure to regional growth markets.
At 1a Ken Tubman Drive, Maitland, a major Reading Cinemas complex is on offer with both holding income and redevelopment potential. The 2082-square-metre strata site sits in the heart of the CBD and includes parking for 100 vehicles. Currently leased to Reading on a one-year term with options, the property could continue as a cinema or be repositioned for alternative commercial or mixed-use purposes, subject to approvals.
