Leasing demand remains broadly stable at an elevated level as new CBD openings show positive sign of things to come

• Highstreet brands such as Country Road, Culture Kings and Birkenstock open new stores through the CBD as leasing demand remains present despite some delays in closing deals across the market.
• Stock within the region exists across a wide spectrum of quality, pulling rental values in both directions, keeping market rents broadly stable.

South East Queensland construction remains severely constrained as costs remain elevated

• No additional retail floor space was added to the market in the quarter. Only 14,000 sqm has been added to the market to date this year.
• The 10-year average level of completions for previous years up to Q3 was 82,300 sqm. The year-to-date level for 2025 is 83.0% lower than the 10-year average.

High levels of investment recorded with transaction volumes reaching highest point since Q4 2023

• Westfield Chermside sold for AUD 683.0 million in the quarter, the second largest transaction for the market in the last 10-years. A total of AUD 863.6 million worth of retail assets transacted in the quarter.
• All yields remained stable in the quarter in South East Queensland. The regional sub-sector yields for South-East Queensland are in-line with Sydney’s and represent the tightest regional asset yields nationally.

Outlook: Progressive yield tightening and increased rents forecast across regional and sub-regional assets

• As economic tail winds blow in to the Christmas period, the South-East Queensland market is forecast to record further yield compression within the largest asset sub-sectors.
• The supply forecast looks to remain highly constrained, with the market providing some of the lowest levels of supply nationally.