Melbourne Retail Market Q3 2023

November 15, 2023 5 Minute Read

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Key Points: 


  • Retail Sales in Victoria reached $9,292.9m in September 2023. This represents a 1.2% increase quarter-on-quarter and 3% increase year-on-year.
  • CBRE’s migration related demand estimates indicate more than $3bn will be seen in Victoria per annum because of record-high migration nationally over the 2023-2025 financial years.
  • Retail supply over 2023-2026 is expected to reach 500,000sqm across CBD and Shopping Centre assets. This figure is moderately higher than the historical average of c.105,000 sqm seen from 2018-2022.
  • Melbourne CBD Vacancy in H1 2023 is recorded at 10.7%, a 90bps increase from H2 2022.
  • Melbourne Super Prime CBD face rents continue to see underperformance, driven in part by a slow return-to-work, with a year-on-year decline of 17.2%.
  • Retail investment sales have seen strong performance year-to-date, with $1,038m recorded, with 95% of total sales volumes by dollar amount being accounting for in shopping centre assets