Melbourne’s Q3 retail completions finally outperform 10-year average

Completions have underperformed for six consecutive quarters.

Two new retail projects, two extensions, and one refurbishment project totalling 34,600 sqm reached completion in Q3 2024, according to data from JLL.

The analyst said quarterly completions rebounded to 38%, above the ten-year historical average (25,165 sqm) after six consecutive quarters of below-average completions.

Here’s more from JLL:

Victoria’s rolling annual retail trade growth to August 2023 was recorded at 1.8%, on par with the national average.

Leasing enquiries were anecdotally higher as retailers prepare for the end-of-year shopping period.

All sub-sector yields were stable from the previous quarter and on a 12-month basis

The sub-regional sub-sector (6.50%) remained the highest yielding sub-sector in Victoria.

Quarterly transactions totalled AUD 259.8 million, 18% higher than Q2 2024.

Outlook: Yields expected to remain stable

Futures market is forecasting the RBA to cut rates in H1 2025, which may drive transaction liquidity in Victoria in the near term.

No further yield softening is expected in the near term.