SE Queensland retail completion significantly underperforms 10-year average

Only 14,000sqm of new stock entered the market so far this year.

South East Queensland construction remains severely constrained as costs remain elevated, said JLL in a report. No additional retail floor space was added to the market in the quarter. Only 14,000 sqm has been added to the market to date this year.

“The 10-year average level of completions for previous years up to Q3 was 82,300 sqm. The year-to-date level for 2025 is 83.0% lower than the 10-year average,” the report added.

Here’s more from JLL:

Highstreet brands such as Country Road, Culture Kings and Birkenstock open new stores through the CBD as leasing demand remains present despite some delays in closing deals across the market.

Stock within the region exists across a wide spectrum of quality, pulling rental values in both directions, keeping market rents broadly stable.

High levels of investment recorded with transaction volumes reaching highest point since Q4 2023

Westfield Chermside sold for AUD 683.0 million in the quarter, the second largest transaction for the market in the last 10-years. A total of AUD 863.6 million worth of retail assets transacted in the quarter.

All yields remained stable in the quarter in South East Queensland. The regional sub-sector yields for South-East Queensland are in-line with Sydney’s and represent the tightest regional asset yields nationally.

Outlook: Progressive yield tightening and increased rents forecast across regional and sub-regional assets

As economic tail winds blow in to the Christmas period, the South-East Queensland market is forecast to record further yield compression within the largest asset sub-sectors.

The supply forecast looks to remain highly constrained, with the market providing some of the lowest levels of supply nationally.