Australian retail property transactions reached $16.3 billion in the 12 months to the third quarter of this year, according to JLL data.
Third-quarter transactions totalled $4.6 billion, 98 per cent above the 10-year average and the second-highest quarterly total since 2022. Calendar-year transactions reached $14 billion last year.
Sam Hatcher, JLL’s head of retail investments for Australia and New Zealand, said the sector’s fundamentals continued to attract existing and new investors.
“It is the most transparent real estate investment sector in Australia and the most transparent retail market globally. No other sector gets monthly sales figures of their investments. It’s unique and a premium is applied for that,” he said.
Household spending also supported the market, rising 5.6 per cent in August, according to the Australian Bureau of Statistics (ABS). Consumers continued to prioritise value, necessities and experiences while adjusting their budgets.
Queensland recorded $6.2 billion in transactions in the 12 months to the third quarter of this year, ahead of NSW at $4.8 billion and Victoria at $3.2 billion. Queensland’s median regional yield tightened 12.5 basis points to 5.63 per cent, the lowest nationally. Population growth, regulatory stability and the 2032 Olympic Games are supporting investor confidence in the state.
Regional shopping centre transactions increased from six in 2023 to nine in 2025. Five deals have been completed so far this year, with cumulative transaction volumes reaching $5 billion. With few new developments in the pipeline, some owners have sold partial stakes while retaining exposure to these assets.
Demand from domestic and international brands has driven centre upgrades and expansions. Vacancy rates stood at 2.0 per cent in the first half of this year. Regional centres also help retailers integrate physical stores with online channels.
Neighbourhood centres ranked second by transaction value, recording $2.5 billion in transactions year to date, or 22.5 per cent of transaction volume. Large format retail followed with $1.1 billion, sub-regional centres with $800 million and prime CBD retail with $400 million.
Neighbourhood centres have recorded the most development activity since 2024, with 24 assets added so far this year, mainly in growth corridors and residential areas with growing populations. A further 61,338sqm of retail space is expected to be delivered in 2027 and 2028.
Australia’s population is projected to reach 30 million by 2033, supporting demand for supermarket-anchored centres. Population ageing is also influencing landlords’ tenant mix decisions, including greater provision of healthcare and other essential services. These centres continue to provide income during periods of weaker consumer spending.
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