Retail Lags Population

Dec 13th, 2012

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Article by:
Marissa Lague

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The supply of retail space in WA has not kept up with population growth and the property industry is forecasting a significant catch-up phase of construction to build new shopping centres.


A survey of WA shopping centres by the Property Council of Australia and property group Lease Equity shows there has been a 2.1 per cent fall in the amount of retail space per person in the 10 years from 2002.


Joe Lenzo, Property Council of Australia executive director said a Government-imposed limited on the size of shopping centres which was lifted in 2010, contributed to the undersupply.


This year, WA has 271 shopping centres providing 2,091,776 sqm of retail space. In the past 10 years 30 new shopping centres were built, increasing the total space by 24 per cent.


Despite the size cap that limited expansion of major regional shopping centres, they were the fastest-growing category, doubling in number from four to eight in the past decade.


The survey also showed strong growth in the CBD where the total retail space almost doubled from 2002.


Small neighbourhood centres had the biggest share of retail space, occupying 32 per cent of the market but recorded the weakest growth. The amount of space in small neighbourhood centres increased just 3per cent in the past 10 years.


The survey found the number of individual shops in WA shopping centres grew by 996 to 7392 in the past 10 years but most of the new shops, where in major regional shopping centres in Perth, while the number of shops in small neighbourhood centres fell by 207.


Jim Tsagalis, managing director of Lease Equity is forecasting new retail developments at the super-regional level.


'We expect centres to grown in size more akin to Sydney and Melbourne centres, particularly in the super-regional segment,’ Mr Tsagalis said.


'The take-up of the internet sales will affect retail but the layering of the offering will see a greater emphasis on lifestyle, food, beverage and entertainment being offered in shopping centres.'


CBD retail growth would continue Mr Tsagalis said because of the increasing number of office workers.


Lino Iacomella, the Property Council's deputy executive director, said Perth's growth plans meant new centres would be required for suburbs on the urban fringes. Expanded existing centres would service higher densities in established communities.


'We are entering a cycle of major developments in retail and in the next five years there will be a significant increase in retail space,' Mr Iacomella said.


'New shopping centres and extensions will be aligned with the State Government's activity centre policy and will be more mixed-use with amenities such as housing, jobs and entertainment as well as a retail component.'

 

Jim Tsagalis, managing director of Lease Equity is forecasting new retail developments at the super-regional level.

 

'We expect centres to grown in size more akin to Sydney and Melbourne centres, particualarly in the sper-regional segment,' Mr Tsagalis said.

 

'The take-up of the internet sales will affect retail but the layering of the offering will see a greater emphasis on lifestyle, food, beverage and entertainment being offered in shopping centres.'

 

CBD retail growth would contine Mr Tsagalis said because of the increasing number of office workders.

 

Lino Iacomella, the Property Council's deputy executive director, said Perth's growth palsn meant new centres would be required for suburbs on the urban fringes. Expanded existing centres would service higher densities in established communities.

 

'We are entering a cycle of major developments in retail and in the next five years there will be a significant increase in retail space,' Mr Iacomella said.

 

'New shopping centres and extensions will be aligned with the State Government's activity centre policy and will be more mixed-use with amentities such as housing,jobs and entertainment as well as a retail component.'

Source: thewest.com.au

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