Melbourne new retail supply hits 30,300sqm in Q3

Two neighbourhood completions were included in this new stock.

According to a JLL report, new retail supply in Melbourne totalled 30,300 sqm in Q3 2025, of which 24,700 sqm was across two neighbourhood completions, both situated in outer growth corridors, catering to Melbourne’s forecast population growth.

“Melbourne Walk at Bourke Street Mall reached completion, adding 5,600 sqm of new retail space alongside the refurbishment of 299 Bourke Street reopening with anchor tenant Mecca. Both developments contributed to the revitalisation of CBD retail sentiment,” the report added.

Here’s more from JLL:

Rent growth was recorded across all subsectors apart from the CBD prime, underpinned by Melbourne’s growing population and declining retail space per capita. The most notable growth for the quarter was in the LFR subsector at 2.0%.

Midpoint yields in both the neighbourhood and LFR tightened by 13 bps to 6.25% and 5.63%, respectively. This was driven by investor confidence surrounding sub-sectors weighted toward retail trade categories with low volatility.

Outlook: Further yield compression in all subsectors is forecast, with continued investor confidence within the sector

Melbourne’s minimal retail supply pipeline, particularly for subsectors requiring large land holdings, will continue to promote rent growth and declining vacancy as demand for existing stock rises.

Landlords continue to hold key assets and explore the options of partial divestments to generate capital for centre repositioning and refurbishments.