This article is from the Australian Property Journal archive
PERTH shopping centres are set for a major revamp in the coming decade, with around $4.5 billion across 42 projects prime for redevelopment, according to Y Research.
Y Research’s 2016 Metropolitan Perth Shopping Centre Development Report said a mix of expansion to existing centres new neighbourhood centres are to be completed as part of the investment wave between 2015 and 2020, with the potential to add around 24.4% to the metropolitan Perth’s shopping centre supply. These will feature supermarkets, department stores, discount department stores, international retailers and an estimated 1,784 specialty retailers.
Chief problem solver of Y Research, Damian Stone said as investment in the resources industry moderates, and Perth’s office and residential markets slow down, Western Australia and the property industry must encourage new investment.
“Shopping centre developments are set be the main driver of growth in the property and construction sectors in the years ahead. Planned shopping centre developments are forecast to create $750 million worth of investment per annum between 2015 and 2020. Thousands of jobs will be created in the construction and operation of these centres.
“Changes to planning policy under the current government, the introduction of the Activity Centres Policy and extended trading, have facilitated planned investment in major regional centres while the real legacy of the resources boom, a larger population, supports the development of local shopping facilities,” he said.
More than half of proposed development is in major regional centres, including Carousel, Galleria, Garden City, Innaloo, Karrinyup, Midland Gate and Whitfords City, with the average size of development in major regional centres to grow their existing floorspace by more than 50%.
A new wave of retailers will be responsible for the take up of space in these centres. Recent major additions to the retail offering in the city include Zara, Topshop, Williams-Sonoma and H&M, whilst supermarket Aldi is due to open the first of 70 planned Perth stores next month.
“By the end of the decade the next wave of international retailers will likely see companies such as Uniqlo, GAP, Sephora and Under Armour open stores in WA,” Stone said.
He added that the current wave of development will also create dining precincts and introduce restaurants and taverns into WA centres.
“New service-based retailers will become mainstays of larger regional centres. Gyms, childcare centres, medical centres and children’s playgrounds will create daily interaction.” Stone concluded.
Australian Property Journal
