Melbourne’s retail property market has continued to demonstrate strong results over the last 12 months with yields remaining firm. A reflection of limited quality stock available and strong purchaser demand.
Demand comes from both overseas and domestic investors, attracted by low interest rates, our depreciating Australia dollar, stable government and transparent markets.
6 Key Highlights from Herron Todd White’s July 2018 Report:
- Interest Rates are a key driver. Thus, any uplift in rates will reduce buyer demand
- Mixed Use Retail Residential Strong levels of this type of medium density development continues in Richmond, Brunswick, Collingwood, Fitzroy and South Yarra
- And is now extending into Melbourne’s middle suburbs in areas with good access to public transport, such as Thornbury, Preston, Cheltenham and Mentone
- SUPER-SIZE Shopping Centres like Chadstone, Fountain Gate and Eastland continue to put downward pressure on traditional retail strips with Retailers vacating in droves
- Massive population increases in new residential estates in Melbourne’s North and South-Eastern suburbs, such as Craigieburn and Officer, are expected to drive demand for local retailing facilities and amenities to service the local area.
- A transformation in Retail Tenancy Mix is occurring in suburbs like Bridge Road, Richmond, Chapel Street and South Yarra where there is a shift away from fashion and footwear towards food and service-based businesses, to meet the changing needs of the increasing local resident population.