Chisholm Village, a prominent neighbourhood shopping centre in Canberra, has been listed for sale, marking the first time in over four years such a property has been formally offered in the Australian Capital Territory (ACT), highlighting the tightly held nature of retail investment in the nation’s capital.

Situated at 42 Halley Street, Chisholm, the centre features a diverse retail mix anchored by a full-line Coles supermarket. The recent renewal of Coles' lease agreement, a substantial increase in base rent, and three new 10-year options, coupled with a planned major refurbishment by December 2026, significantly enhances the property's appeal.

“Chisholm Village is a unique opportunity to acquire a high-performing retail asset in a market where properties of this kind are extremely challenging to come by,” said Steve Lerche, National Director of Retail Investments at Savills Australia and New Zealand.

“The centre’s robust supermarket sales, diverse tenant mix, and potential for further value-add make it a prime investment,” Mr Lerche added.

The listing of Chisholm Village comes at a crucial time for Canberra’s retail sector. According to a recent Urbis report, supermarkets in Canberra are operating at 30% above the national average for trading volumes.

Canberra's economic strength, supported by a Gross State Product (GSP) per capita of $94,831 in 2023 and average household incomes 32.5% above the national average, the city faces a significant shortfall in supermarket capacity.

Canberra's population is projected to grow by nearly 100,000 over the next decade, reaching 550,000 by 2033 and continuing to climb to around 800,000 by 2060, according to the Federal Government's Centre for Population. This population surge, combined with the stability of a predominantly government-employed population, necessitates increased infrastructure to meet residents' needs. People employed by the government have a high sense of job security and this translates to consumer spending.

The ACT's careful planning regulations around new retail spaces are largely behind the fact it has fewer neighbourhood centres, compared to other states.  One of the key principles of Canberra’s urban structure is based on a hierarchy of centres, where each town has a central hub for higher order retail, commercial services, offices and community facilities and a range of smaller neighbourhood centres in place to meet the needs of residents closest to these.

Canberra currently supports 18 Woolworths, 16 Coles, 12 Aldi stores, two full-line Supabarn stores, and various IGA stores and only a few new centres, such as those planned in Molonglo Valley, expected to come online in the near future.

This opportunity has led to competitive bidding for available properties, an example being the recent $74 million off-market acquisition of Cooleman Court by Region Group, which underscores the high demand for Canberra's retail properties. This purchase, anchored by Woolworths and Aldi, highlights investor confidence in the city's retail market, known for its stability and high non-discretionary retail traffic.

Chisholm Village, located just 16 kilometres from Canberra Civic CBD, caters to the well-established southern suburbs with 16 specialty tenants, a car wash, ATM facilities, and ample parking space. The ACT’s stringent planning regulations limit future retail competition, ensuring the centre’s long-term value.

In addition, a deal has recently been agreed with KFC to establish a drive-through restaurant and McDonald's has expressed strong interest in a similar venture are expected to boost foot traffic.

“The current owners and managers of Chisholm Village have executed a strategy to improve the speciality mix of the centre, with 12 of the 16 speciality retailers being food and beverage or essential services operators,” said Andrew Palmer, Associate Director Retail Investments at Savills Australia and New Zealand.

“With a focus on essential services, health, plus food and beverage, Chisholm Village is well suited to savvy investors seeking a high-traffic, daily needs-based shopping centre,” Mr Palmer concluded.

Savills' latest Australian Retail Investment report reflects growing investor confidence in the retail sector, driven primarily by private investors and syndicators. This shift in market dynamics underscores the strength and potential of Canberra’s retail property market.

Related Readings

QLD Woolworths-anchored Warbu-Bellmere shopping Centre sold - CBRE

IP Generation’s $315m deal for Stockland Glendale sold by Colliers

Thriving Busselton Central for sale by Stonebridge and CBRE

Sydney's Langston Village centre for sale - JLL

Modern Gold Coast Neighbourhood Shopping Centre, anchored by SPAR for sale - Colliers