Sydney to record over 45,000sqm of new retail space by year-end

Retail completions will gain momentum towards the latter half of 2025.

In a recent report, JLL noted that the second half of 2025 is forecast to see a substantial uptick in retail completions in Sydney, with 45,400 sqm of retail space expected to be completed by year-end.

“Regional and sub-regional yields are forecast to gradually compress over the near term. Investors show strong interest in convenience-centred assets or in purchasing assets that offer an attractive price point compared to other asset classes,” the report added.

Here’s more from JLL:

A total of 6,300 sqm of new retail space was completed in Q2, of which 4,600 sqm was an upgraded Coles supermarket in Lindfield, whilst the remaining 1,700 sqm comprised a refurbishment and extension of the existing Grove Square Neighbourhood Centre.

Investment appetite for retail assets continues to grow as transaction volumes rise

Total investment volumes with the inclusion of Macquarie Centre were AUD 1,512.1 million, noting this also excludes the yet to be confirmed price of Chullora Marketplace purchased by Charter Hall within the quarter.

The sale of the neighbourhood centre St Ives Shopping Village for AUD 450 million was the largest standard transaction this quarter. Large Format Retail (LFR) rents recorded the most significant year-on-year increase of 3.6% compared to the other retail sub-sectors.