Canberra retail market continues to remain steady: HTW Commercial

The Canberra retail property market has been consistent for a number of years now and appears to be remaining steady, according to the latest report from valuation firm Herron Todd White.

The March report found that there has been strong retail interest in the CBD and suburban centres, particularly in the City, Kingston foreshore and Braddon.

“Secondary locations and older stock have seen low levels of interest and we expect this to continue. With the Gungahlin to City light rail now complete and a number of mixed-use developments in the works along Northbourne Avenue, there will be an increase in the amount of ground floor retail space available in the region,” the valuation firm continued.  

“We have seen a steady increase in the costs of owning commercial property in Canberra, particularly increases in territory rates.”

To offset these increases, there has been more investors negotiating for net leases and increases in recoverable outgoings.

Canberra’s retail turnover grew by 4.1 percent year on year to December 2019 compared to 2.7 percent year on year nationally.

There has been an increase in the number of restaurants and cafés in the CBD and suburban centres.

The food retailing and café and restaurant industries make up over half the retail turnover in the region and the strong growth in these industries has seen the ACT at the top of the retail trade growth list in December.

“The outlook for 2020 is for the retail property market to remain steady however any increase in interest rates or decrease in market sentiment may have a negative impact on prices in the region,” the report concluded.