A shopping centre survey has identified 39 developments in Western Australia, with most of the future projects categorised as sub-regional and neighbourhood centres.
A shopping centre survey has identified 39 developments in Western Australia, with most of the future projects categorised as sub-regional and neighbourhood centres.
Development Survey Shows Confidence in WA Retail
Property developers are looking beyond the current economic gloom and are preparing for further expansion in retail business in Western Australia. The latest survey of future developments proposed in the WA retail property sector has identified some 39 major new developments and extensions over the next five years.
The 2009 Retail Development Survey prepared by the Property Council of Australia with the assistance of retail property experts Lease Equity uncovered retail developments that will add some 263,274sqm of new retail space in WA between 2008 and 2012.
Development of retail space is being fuelled by the substantial growth in population and expansion of national retailers business into Western Australia, largely as a result of the resources boom.
The expected growth in NLA is the equivalent of adding three and half Westfield Carousel's, WA's largest centre at 76,704 sq m. Key findings of the survey include:
- In terms of status 36% of projects are complete (96,064 sq m), 34% are DA approved (90,640 sq m) and 30% are under construction (76,570sq m).
- Nearly 60% (152,767 sq m) of the extra space will be added in new centres, 40% comes from extensions to existing centres, and 2% is a result of refurbishments.
- A majority of new retail space (62%) is planned for sub-regional centres and neighbourhood centres.
- The largest concentration of the planned extra retailing space is to be located in the northern metropolitan suburbs of Perth 107,770 sq m or (41%), followed by 84,730 sq m or 32% in the southern suburbs. 11% of space is located in Perth's eastern suburbs and 16% of the extra space is occurring in the Perth CBD.
- The peak year for completion of the expansions and new developments is 2009 (28%, by space)
- 177,374 sq m or 67% of developments are being undertaken by private developers.
Property Council Executive Director, Joe Lenzo, said the results show that developers have strong confidence in the WA retail sector in the medium to long term.
"The 2009 survey shows a 10% increase in proposed gross lettable area from the 2008 results
despite significant changes in the outlook for the state economy".
Recently completed developments included:
- 21,750 sq m at Lakeside Joondalup - Stage 2 by ING
- 18,200 sq m at Rockingham City Shopping Centre by Colonial First State
- 14,274 sq m at Claremont Quarter - Stage 1 by Hawaiian/Brookfield Multiplex
- 10,253 sq m at Wanneroo Central - Stage 1
- 8,500 sq m at enex100 by ISPT
Major projects currently under construction include:
- 29,700 sq m in the CBD at City Square, Raine Square, 140 William Street, Equus and St Martins Arcade
- 15,500 sq m at Claremont Quarter Stage 2 by Hawaiian/Brookfield Multiplex
- 8,000 sq m at The Springs - Beechboro by Qube Property Group/Erceg.
Lease Equity Managing Director, Jim Tsagalis, said that as confidence returns to the marketplace, we can expect to see an increase in this type of development.
"The CBD has continued to be strong for a number of years, and much of the retail stock is
starting to come to fruition after beginning construction prior to the downturn. We have seen some excellent results through the likes of enex100 and Wesley Quarter" Mr Tsagalis said. "Meanwhile, suburban developments were put in a temporary hiatus, but expect that to come to an end with the latest confidence boost triggering those plans back into action."
Mr Tsagalis also pointed toward the planned changes to retail development limits further stimulating activity. "The removal of development caps on shopping centres will also springboard a number of new expansion projects."
The survey found that a majority of proposed new developments (62%) will occur in smaller sub-regional and neighbourhood centres.
"Expansion in the larger regional centres has until now been restricted by development limits by the State regulations. The new Activities Centres Policy, which includes guidelines for retail centre developments, is currently out for comment. The Property Council is actively working with the Government to create a more realistic policy, which accommodates changes in demographic
and property usage trends around existing and new centres. Legislation is expected in 2010," said Mr Lenzo.
