Melbourne Retail Figures Q3 2024

Key Points: 

• Victorian retail turnover saw a modest improvement in Q3 2024, with +1.6% recorded over the last three-months.
• Labour market conditions continue to ease, with Victoria’s unemployment rising to 4.5%. This aids retail tenants' ability to expand whilst limiting inflationary pressures on local wages.
• Retail supply over 2024-2025 is expected to reach c.210,000sqm across CBD, shopping centre and LFR assets. Supply over this time is expected to remain in line with the five-year historical average of c.160,000sqm p.a.
• Melbourne CBD vacancy in H2 2023 was recorded at 6.9%, a 50bp decrease from H2 2024.
• Net face rents across Melbourne’s shopping centre and LFR assets saw mild growth in Q3 2024, with stability in super prime CBD assets experienced over the quarter.
• Retail investment sales saw a moderate uptick across Melbourne in Q3 2024, with a recorded c.$297m transacting.
• Yields showed mild movement over the quarter in select assets grades