Over 164,000sqm of new retail stock currently under construction in Sydney

The majority are concentrated in large format retail.

Sydney’s retail market saw four completions deliver a total of 23,700 sqm of new supply in Q4 2025 according to data from a JLL report, comprising a mix of new additions, expansions, and refurbishments. Notable openings included Sydney Fish Market, which added 12,000 sqm of retail space, and Calderwood Village, contributing 7,500 sqm. 

According to JLL, the city currently has 164,400 sqm of retail stock under construction, with the majority concentrated in large format retail (59,800 sqm), followed by neighborhood centers totaling 53,700 sqm.

Gross retail rents across all categories recorded modest growth during the quarter, while market yields remained broadly stable. Large format retail was an exception, experiencing a 25 basis point compression. Investment activity remained strong, with total transaction volumes in Sydney reaching AUD 1.7 billion for the quarter. The standout deal was the sale of a 19.9% interest in Westfield Sydney for AUD 864 million, sold by Scentre Group to Australian Retirement Trust, highlighting continued investor appetite for prime retail assets.

Looking ahead, JLL notes that steady supply levels, high occupancy rates, and healthy income growth are likely to support further investment activity and additional yield compression across regional and sub-regional centers in 2026. While inflation surprised on the upside towards the end of 2025, which could influence near-term consumer demand and retail turnover, it has so far not dampened investor sentiment. The Sydney retail sector is therefore expected to maintain resilience in the year ahead, balancing new supply with sustained investor confidence.