Market Update
Melbourne offers something for everyone
From rugby
Melbourne retail bounces back. Dr. Tony McGough Partner, Head of Research & Consulting, Victoria
Why? Well the return-to-work story in Melbourne remains weaker than other cities, particularly on Mondays and Fridays. But Melbourne has other strings to its bow. According to STR Melbourne sold a record 870,755 hotel room night in June,1.6% higher than last years record, as the RISING festival got underway, and attractions poured into the city, with exhibitions from Lego’s Star Wars to French Impressionists. There is more to come. In July the British Lions outdid Taylor Swift and brought a 140% increase in Sports apparel sales, a 94% increase in pub sales (of course) and another 6% increase in accommodation sales (according to NAB). In August we had Mecca opening to an estimated 20,000 customers on day one and expected to attract 50,00 per week going forward. Melbourne continues to be the magnet to major national
The Melbourne retail market has continued to go from strength to strength. Latest figures out this month from the City of Melbourne show that spare units in the central CBD are becoming as rare as hens’ teeth. The vacancy rate has dropped a percentage point to 5.5% in H1 2025, it was as high as 27.9% during 2021. The broader CBD is down sharply as well to 7.8%.
...To Mecca Melbourne Flagship
RBA cash rate forecasts
by major bank, %
More to come as price pressures ease RBA cash rate forecasts by major bank, %
Cash rate
ANZ
CBA
NAB
Westpac
Cash rate
ANZ
CBA
NAB
Westpac
3.00% 3.20% 3.40% 3.60% 3.80% 4.00% 4.20% 4.40% 4.60%
RBA cash rate forecasts RBA cash rate forecasts by major bank, %
3.00% 3.20% 3.40% 3.60% 3.80% 4.00% 4.20% 4.40% 4.60% NAB
by major bank, %
and international attractions and retail is pivoting to take advantage of this. As price pressures ease, and interest rates continue to fall back to a neutral setting (both here and abroad) expect the cultured, fun city to go from strength to strength and the leasing environment to consequently get even tighter. Cash rate by major bank, %
Cash rate RBA cash rate forecasts
ANZ
CBA
NAB
Westpac
Cash rate
ANZ
CBA
NAB
Westpac
by major bank, %
3.00% 3.20% 3.40% 3.60% 3.80% 4.00% 4.20% 4.40% 4.60% ANZ CBA NAB
RBA cash rate forecasts
3.00% 3.20% 3.40% 3.60% 3.80% 4.00% 4.20% 4.40% 4.60%
Cash rate
ANZ
CBA
Westpac
by major bank, %
RBA cash rate forecasts
3.00% 3.20% 3.40% 3.60% 3.80% 4.00% 4.20% 4.40% 4.60% ANZ CBA
Cash rate
CBA
NAB
Westpac
by major bank, %
RBA cash rate forecasts
3.00% 3.20% 3.40% 3.60% 3.80% 4.00% 4.20% 4.40% 4.60% ANZ
Cash rate
NAB
Westpac
3.00% 3.20% 3.40% 3.60% 3.80% 4.00% 4.20% 4.40% 4.60%
Westpac
3.20% 3.40% 3.60% 3.80% 4.00% 4.20% 4.40% 4.60%
Source: Knight Frank Research, Canstar
Source: Knight Fran
Source: Knight Frank Research, Canstar
Source: Knight Frank Research, Canstar
Source: Knight Frank Research, Canstar
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Source: Knight Frank Research, Canstar
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