Limited supply of supermarket-anchored centres drives competitive buyer activity across Melbourne’s metro market.
Colliers Retail Middle Markets experts Tim McIntosh and Will Heffernan are pleased to exclusively announce the successful off-market sale of Glen Gala Village Shopping Centre in Sunshine West just 17km* from Melbourne CBD. The centre was secured by a sophisticated value-add investor who has been actively looking for opportunities for several years, reflecting the scarce supply and high buyer demand for neighbourhood shopping centres across metropolitan Melbourne.
Located just 14 kilometres west of Melbourne’s CBD and adjacent to the Western Ring Road, Glen Gala Village Shopping Centre comprises a supermarket-anchored neighbourhood shopping centre and 12 specialty shops, with a total gross lettable area of 3,675sqm on a 10,200sqm mixed-use zoned site. Supported by 115 on-grade car spaces, the centre has long served as a vital retail hub for the local community.
Tim McIntosh, Colliers National Director, Retail Middle Markets, commented, “The result of Glen Gala Village Shopping Centre underscores the elevated competitive demand for existing supermarket anchored investments, contrasted by limited supply of new and established neighbourhood centres.”
“Just three Victorian neighbourhood centre sales have been announced year to date, with a notable decline in part due to no sale and leaseback centres from Woolworths or Coles coming to market. This has translated to significant pent up demand and is reflected in Victorian shopping centre yields remaining the sharpest across all states and territories.
According to Colliers Q3 Retail Snapshot, investment activity for neighbourhood centres remains robust nationally, with transactions reaching $554 million in Q3 alone, bringing 2025 year-to-date totals to $1.97 billion. Private capital has strongly favoured this asset class, accounting for 49 percent of market share, while institutional investors have increased their participation to 32 percent, reflecting growing confidence in the sector.
Yields remain stable nationally, with further compression expected as retail fundamentals continue to strengthen. Strong economic and retail indicators have underpinned the growth of neighbourhood centres, contributing to their outperformance. With a strong weighting towards non-discretionary retail, these centres have become increasingly attractive investment opportunities.
The sale of Glen Gala Village Shopping Centre along with other recent neighbourhood deals, including Mernda Junction Village highlights the ongoing momentum in the neighbourhood retail sector and reinforces the strategic value of well-located, community-focused retail assets in today’s evolving market.
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