Melbourne Retail Figures Q1 2026

Key Points: 

• Household spending in Victoria in February 2026 rose by 0.4% m-o-m and 3.8% y-o-y in seasonally adjusted terms, hinting at continued resilience in consumer demand despite broader economic uncertainty.
• In February 2026, Victoria’s unemployment rate held at 4.7% (-0.5 pp y-o-y), remaining low by historical standards.
• Retail supply over 2026 and 2027 is projected to reach c.333,113 sqm across CBD, shopping centre and LFR assets. Supply is anticipated to align with the five-year historical average of c.119,272 sqm p.a.
• In Q1 2026, net face rents for super prime CBD increased 3.6%, reflecting strong demand for flagship locations as luxury and experiential retail continues to rebound. LFR rents rose by 2.8% while other retail assets remained broadly stable during the quarter.
• Retail investment activity in Melbourne ($5m+) totalled $287.2m in Q1 2026. The most notable transaction was the sale of Chadstone Lifestyle Centre, a large-format retail centre.
• Sub-regional centres experienced the sharpest y-o-y yield compression, contracting by 28 bp.