Big projects crank up confidence in Brisbane CBD retail property market

A new report says there is renewed confidence in the Brisbane CBD retail property market from private investors, developers and syndicates heading into the 2020s.

Infrastructure and development are reshaping the dynamics of the Brisbane CBD and key to reinvigorating the Brisbane CBD retail market. Picture: AAP/David Clark

BOXING Day sales always get the tills ringing but it is big ticket infrastructure and development projects that are giving a real boost to the Brisbane CBD retail market.

According to a new report from Colliers International, there is renewed confidence in the market from private investors, developers and syndicates heading into the 2020s.

It cites the Cross-River Rail and Brisbane Metro projects as well as the rising $3.6 billion Queen’s Wharf precinct, all of which are set to reshape the dynamics of the River City, as key to its retail reinvigoration.

Business leaders: ‘It’s time to cut the red tape’

Surge in investment sales delivers record-breaking year for Qld industrial market

Towering cranes return to Brisbane skyline as Queen’s Wharf project ramps up

The latest Colliers’ Retail Research & Forecast Report also found the development activity had provided the impetus for a number of “repositioning deals” in the CBD’s retail leasing market.

Colliers’ Queensland associate director of retail leasing, Luke McGrath, said Brisbane’s CBD had become an active chess board with several large scale retailers strategically taking up space on Queen Street Mall.

“High-end market retailers, like Swarovski and Michael Hill, commenced operations over the past few months and Hermes have recommitted and expanded their footprint at

their current location on 171 Edward St,” he said.

“Also, the development application for a third Coles supermarket store in the city … on the upper level of the existing podium at 71-89 Adelaide St is currently under council assessment.

“These leasing deals show that retailers of high calibre have faith and confidence in the Brisbane CBD retail market,” Mr McGrath said.

Swarovski in the Queen Street Mall.

Colliers’ research manager, Karina Salas, said the transformation of Queen Street Mall over the next 2-3 years would provide a renewed retail experience in the CBD.

“This is expected to happen once the Cross-River Rail and the Brisbane Metro are closer to reaching practical completion and the Queen’s Wharf hotel, restaurants and public space open to the public by late 2022,” she said.

The Colliers report shows that capital flowing into the Queensland retail market softened in 2019 with a total of $1.36 billion worth of retail assets transacted in Queensland compared to about $1.83 billion in 2018.

But according to Colliers’ national director of retail investment services, Stewart Gilchrist, there has been increased activity from private investors, developers and syndicates acquiring about 64 per cent of the volume of sales ($872 million) for the year to date with yields in the range of 5 to 7 per cent.

The Brisbane CBD retail property market is getting a boost from development activity.

The most notable Queensland retail transaction over the past year was the $250 million sale of Noosa Civic Town Centre to private developer/investor, Mark Stockwell.

“While private investors will continue to dominate, the key trend to watch in 2020 is the re-emergence of the syndication groups,” Mr Gilchrist said. “This is due to their investors now being prepared to accept lower returns — a direct impact of our low interest on deposit environment,” Mr Gilchrist said.