Australian Retail Vacancy Rates Decline as Market Shows Resilience

Australia's retail property market continues to strengthen with vacancy rates falling to 4.7 per cent in December 2024, down from 5.5 per cent a year earlier. 



According to new research from JLL, CBD locations have seen the strongest recovery, with vacancy rates dropping from 11.6 per cent to 10 per cent, representing the largest decrease across all retail formats at 1.6 percentage points. 

Neighbourhood centres also showed significant improvement, with rates declining from 5.9 per cent to 4.9 per cent.

James Hayward, JLL Research Analyst, said the sector has been holding strong last year.

“The retail sector has demonstrated resilience over 2024. CBD locations, in particular, have shown a strong recovery, with vacancy rates dropping from 11.6 per cent to 10 per cent,” Mr Hayward said. 

“This significant improvement signals a revitalisation of our urban centres and renewed confidence among retailers.”

Regional shopping centres saw vacancy rates drop by 0.8 percentage points to 1.7 per cent, while sub-regional centres experienced a decline of 0.6 percentage points to 4.2 per cent.

Several factors have contributed to this positive trend, including improved consumer sentiment, with discretionary spending up 2.4 per cent year-on-year in December 2024. 

A 25-basis point cut in the official cash rate by the Reserve Bank of Australia in February has also stimulated economic activity.

Limited new supply has played a significant role in the market’s recovery, with 2024 recording the second-lowest level of Australian retail completions since 1989.

Lee McLaughlin, JLL’s Head of Retail Leasing & Tenant Representation, Property and Asset Management, said that retailers and centre managers have successfully adapted to changing market conditions.

“The sentiment in the leasing market is decidedly positive,” Ms McLaughlin said.

“Retailers and centre managers have adapted well to changing market conditions and consumer behaviours. 

“Their proactive strategies are now yielding tangible results, as evidenced by the declining vacancy rates across most formats and locations.”

About Retail Show Australia 2026

Retail Show Australia is thrilled to announce that the much-anticipated next edition of exhibition will take place 22-24 September, 2026. Next year, we're embracing a powerful theme: Resilience, Evolution, Rebounce. Join us as we celebrate the strength and adaptability of the retail industry, explore its dynamic evolution, and witness the incredible rebound of this vibrant sector.

Dates：September 22-24, 2026

Venue：Melbourne Convention and Exhibition Centre (MCEC)

Reference: eliteagent.com