Melbourne Retail Figures Q2 2026

Key Points:

• Household spending in Victoria rose by 1.7% m-o-m and 4.7% y-o-y in May 2026 (seasonally adjusted), indicating that consumer demand remains resilient despite ongoing cost-of-living pressures.
• In May 2026, Victoria's unemployment rate increased to 4.9% (+0.5 ppts from 4.4% a year earlier), although it remained relatively low by long-term historical standards.
• Retail supply over 2026 and 2027 is projected to reach c.325,200 sqm across CBD, shopping centre and LFR assets. Supply is anticipated to be above the five-year historical average of c. 121,000 sqm p.a.
• In Q2 2026, net face rents for regional and sub-regional centres increased 1.5%, underpinned by solid occupancy conditions and sustained retailer demand. Other retail assets remained broadly stable during the quarter.
• Retail investment activity in Melbourne ($5m+) totalled $571.8m in Q2 2026, led by the sale of Midtown Plaza (246 Bourke Street) in the CBD.
• Regional centres experienced the sharpest q-o-q yield compression, contracting by 7 bp.