The Australian retail real estate market staged a remarkable comeback in 2025, with total transaction volumes reaching record highs of approximately $13.5 billion. Notably, retail emerged as the highest-traded commercial sub-sector nationally, underscoring the sector’s resilience and positioning it for continued growth into 2026, according to early insights from leading property advisor JLL.
The year saw 138 deals completed, a solid performance compared to prior years, with volumes climbing steadily from $6.3 billion in 2023 to $8.7 billion in 2024. Regional shopping centres emerged as a standout performer, achieving a record-breaking $6.9 billion in transaction volumes across 12 deals – a 75% increase over the previous high of $3.9 billion set in 2021. This regional strength highlights shifting investor focus toward high-quality assets in underserved markets, amid limited supply and robust demand fundamentals.
Nick Willis, Executive Director of Australia & New Zealand at JLL, commented on the broader global context: “2025 marked a significant shift in global sentiment for the retail sector, with large-scale deals returning in force after a hiatus. Notable transactions in Australia included Erina Fair for $895 million (Fawkner), Top Ryde for $525 million (MA Financial & Kepple REIT) and Woodgrove for $440 million (Assembly Funds Management). These deals reflect renewed optimism and capital deployment across key markets, setting a positive tone for Australia.”
Delving into the Australian market’s unique drivers, Willis added: “The fundamentals of the retail sector are firmly supporting strong forecast growth, particularly in Australia where limited floor space supply meets a rapidly growing population. This dynamic is playing out and building with retail leading all core sectors on a 3-year total return basis.”
Looking ahead, Sam Hatcher, Head of Retail Investments Australia, highlighted the evolving nature of transactions in Australia: “Larger transactions provide clear evidence of confidence in the sector, yet access to these prime opportunities remains tightly held by established players. The QIC/Australian Retirement Trust’s acquisition of a 19.9% stake in Westfield Sydney for $864 million epitomises this trend, showcasing strategic partial interest as a pathway to premium assets. We anticipate more such partial transactions to dominate the thematics for 2026, allowing broader participation.”
JLL’s analysis points to a maturing market where strategic partnerships and partial stakes will play a key role in unlocking value. With global and local trends aligning, the Australian retail sector is poised for an active year ahead.
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