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Perth retail space supply booms

Perth is currently undergoing one of the strongest increases in supply of retail space on record according to research by Colliers Jardine.

During 1999, supply is forecast to increase by 80,895 square metres with a further 43,700 sqm increase in 2000. This represents an increase in supply of over tenper cent for those two years.

Six out of Perth’s nine regional retail centres have expanded over the last twelve months or have plans to do so.

Food retailing continues to see the strongest growth with sales for the year to March 1999 being twelve per cent higher than for the preceding twelve months, the research shows.

Access Economics forecast retail turnover in WA to increase at above the national rate in 1999 and 2000 and growth to remain relatively strong into the next decade.

The latest figures from the Australian Bureau of Statistics show total retail turnover for the month of April to be 1181.9 million seasonally adjusted, down from $1232 million for March 1999 but up from $1139 million for April 1998.

Colliers Jardine research manager said: “historically Perth retail property has outperformed most other property classes around the country.”

“Perth is now seeing one of the largest periods of supply additions ever experienced.”

Current expansions include Westfield Carousel (24,268 sqm), Garden City (16,500 sqm), Mirra-booka Square (5,500 sqm), Bel-mont Forum (7,000 sqm) and Lakeside Joondalup (9,000 sqm).

In addition to these current expansions there are also proposals for expansion and redevelopment of Claremont Shopping Centre (11,000 sqm) and Westfield Inaloo (17,500 sqm).

Whitfords City Shopping Centre is also attempting to gain approval for a 15,000-20,000 square metre expansion after being refused approval for a 35,000 sqm expansion last year.

The research report concludes that despite forecasts for retail turnover to increase, the level of new supply coming into the market will mean that rental growth is likely to be limited over the next twelve months.

“However, new supply is not expected to result in any medium to long term oversupply,” the report said.

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