Melbourne Retail Figures Q2 2025

Key Points: 

• Retail turnover in Victoria inched up by 0.2% q-o-q in Q2 2025, reflecting a cautious consumer environment amid broader economic uncertainty.
• The labour market in Victoria exhibited slight easing, with unemployment increasing to 4.4% (up 0.2% y-o-y), however remains low by historic standards.
• Retail supply over 2025-2026 is projected to reach c.369,800 sqm across CBD, shopping centre and LFR assets. Supply is anticipated to align with the five-year historical average of c.143,600 sqm p.a.  
• In Q2 2025, net face rents for large format and strip retail properties in Melbourne saw increases of 2.1% and 0.3%, respectively, while other retail assets remained stable during the quarter. 
• In Q2 2025, retail investment sales in Melbourne totalled $440m, with the single but notable transaction being the sale of Woodgrove Shopping Centre (100% interest).
• Yields were broadly flat in most asset classes in Q2 2025, with large format retail centres compressing by 6.25 bp q-o-q.