Shopping centres in high demand amid record sales

By the Editorial Team · Monday, October 5, 2026

Victoria has seen over A$1 billion in neighbourhood shopping centre sales this year, with 13 transactions totaling A$1.37 billion, driven largely by investor interest in supermarket-anchored centres amid reduced consumer discretionary spending. Despite strong buyer demand and high-profile deals, rental growth at these centres remains minimal, underscoring challenges in converting investment enthusiasm into increased income.

More than A$1 billion worth of neighbourhood shopping centres in Victoria have changed hands this year, marking one of the busiest periods for the sector since 2023. According to data from Colliers, a commercial real estate firm, 13 shopping centre transactions have been recorded statewide, totaling A$1.37 billion. Of these, nine involved neighbourhood centres, which collectively sold for A$611 million—146 percent above the average of the past three years.

The surge in sales is widely attributed to the impact of multiple interest rate increases over the course of the year, which have prompted Victorian consumers to reduce discretionary spending. This shift has made supermarkets and associated retail outlets, which dominate neighbourhood shopping centres, more attractive investments for institutional funds and wealthy private buyers.

Despite just seven publicly advertised sales, the prevalence of off-market transactions and invitation-only bidding processes is growing. Tim McIntosh, national director of retail middle markets at Colliers, noted that these private deals are leveraging strong buyer demand and often secure favorable outcomes.

Several high-profile Victorian shopping centres have commanded nine-figure sums in recent deals. For instance, a 50 percent stake in The Glen at Glen Waverley sold for A$327.5 million. Other significant transactions include Burwood Brickworks for A$107.25 million, Tooronga Village at A$79 million, and a Coles and Aldi-anchored centre in Kilmore that sold for A$38.88 million.

Adding to the market activity, Epping North Shopping Centre, anchored by Woolworths and nearly fully leased, has been put on the market with an expected price in the high A$30 million range. The 5,376-square-metre centre has Woolworths accounting for roughly two-thirds of the tenancy.

Despite heightened investor interest, rental rates at neighbourhood centres have shown minimal growth. CBRE reports that annual rental growth for these centres was just 0.4 percent to June, significantly lagging behind the 4.7 percent increase recorded at regional shopping centres. This divergence highlights the ongoing challenges neighbourhood centres face in translating strong investment demand into higher rental income.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.