New regional retail supply in 2019 totalled 560,000 sq. m., an increase of 2.2x on 2018. However, the figure was significantly less than new supply completed between 2012-2015, when new stock exceeded 1 million sq. m. per year. The increase in new supply is set to continue in 2020, with around 640,000 sq. m. of new stock in the pipeline. However, some projects may be delayed, with just 8 of the 14 shopping centres currently under construction having confirmed opening dates.
Around 39% of new retail supply (comprising 10 shopping centres) in 2019 came on stream in small cities with populations of between 100,000 – 300,000 people, marking a shift away from developers’ traditional focus on larger cities. Cities with populations of between 300,000 – 500,000 people accounted for just 2% of new supply in 2020, a significant decline on the five-year average of 25%. Cities with populations of more than 500,000 people typically account for 60% of new supply.