After workers and shoppers fled the Brisbane CBD in the wake of COVID-19 there are expectations the retail sector will bounce back
After being hit by the coronavirus pandemic there are expectations the Brisbane CBD will recover faster than Sydney and Melbourne.
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WHILE the Brisbane CBD has been doing tough over the past three months there were expectations that the Queensland retail sector will bounce back quicker than its southern counterparts.
Belle Property Retail founder and director Michael Hanscomb said compared to Sydney and Melbourne, Brisbane was witnessing much stronger demand for international and national retailers based in Sydney and Melbourne to expand their footprint and enter Queensland market for the first time.
“Brisbane is now in more demand than Sydney or Melbourne and we’re very optimistic about greater Queensland’s retail retailing future,” he said.
“We envisage Queensland becoming the No 1 domestic/trans-Tasman travel destination as soon as current border restrictions are relieved.
“We also believe there will be a big shift in interstate migration to Brisbane and the Gold Coast with cost of living in Sydney and Melbourne becoming a key driving factor.”
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Mr Hanscomb and fellow director Nick Kelly have completed leasing deals for luxury brands Hardy Brothers and Georg Jensen in two refurbished retail spaces at the Conias Corp-owned Embassy Hotel property at 188 Edward St.
Hardy Brothers has a 125sq m space and will move from Macarthur Central while Georg Jensen (110sq m) will move from QueensPlaza and will be next to Swiss luxury watch giant Omega. Conias Corp is completing the upgrade of the building’s facade and lifting and modernising its awnings.
Mr Kelly said Sydney and Melbourne have been strongly impacted by the closing of the international borders and plunging tourism spending.
However, he said in the short term the Brisbane CBD has also been heavily impacted by COVID-19 restrictions as office workers and shoppers stay home.
“There is real concern that COVID-19 will have a lasting impact as global office requirements change to accommodate more flexibility allowing corporate employees who traditionally commute to the CBD to work from home,” he said.
“Falling numbers of office workers in the CBD will likely have a lasting effect on Brisbane CBD rents and falling sales will eventually lead to increased vacancy rates and a correction in rents.”