The service station industry is expected to experience an evolution by broadening its retail services and transforming current locations into convenience-focused retail hubs to meet consumer needs in Western Australia.

A newly constructed service station and convenience store in the Southwest, Western Australia has been sold for $5,100,000. Located at 8D Picton Road, East Bunbury, the property is leased to the global tenant 7-Eleven under a long-term lease, offering annual rental growth and substantial tax depreciation benefits.

The campaign attracted significant interest, receiving over 80 enquiries from both local and Eastern States buyers. Ultimately, an Eastern States-based funds management group secured the purchase.

Colliers State Chief Executive for Western Australia, Richard Cash and Executive of Investment Services, Aidan Austen were the exclusive selling agents of 7-Eleven East Bunbury, as well as multiple active Service Station listings available at 7-11 Hutton Street, Osborne Park and Burk Fuel, Broadwater in Western Australia.

The sale of 7-Eleven East Bunbury marks the first non-metropolitan service station transaction in over 18 months (since March 2023) and reflects a result over 50 basis points stronger than the March 2023 sale.

So far this year, Western Australia has seen over $41,000,000 in service station transactions, with an average yield of 7.18%. Of these, 7-Eleven East Bunbury represents the only non-Metro sole Service Station transaction, reflecting a sharper yield than the states average transacting at 6.92%. 

Mr Austen said “7-Eleven, East Bunbury, presented a blue-chip, long-term leased investment with a secure, extended lease with an international covenant. In addition to annual rental growth and tax depreciation benefits, the sale reflects the demand for Service Station assets with strong covenants in metro as well as non-metro locations.”   

Colliers’ latest National Premium Investments Research Report revealed that Australia’s service station market, valued at $48.4 billion in 2024, continues to be a vital component of national mobility and economic support.

The market has evolved from being dominated by major oil companies like Shell, BP, and Caltex to featuring over 40 brands. Key players, such as 7-Eleven, have aggressively expanded through partnerships, rebranding, and diversifying their services.

Independent operators hold a significant market share, especially in regional areas in Western Australia such as Burk Fuel, Vibe Petroleum and Petro Fuel where they offer personalised services and build strong community ties.

The sector now includes a variety of offerings, such as convenience stores with fresh food, car washes, pet grooming stations, as well as drive-thru coffee shops accompanying quick service retail offerings.

Richard Cash, State Chief Executive, Western Australia at Colliers, said, “For investors, the service station and convenience store sector in Western Australia continues to offer a strategic blend of an essential service with income security, reliable cashflow and an investment with a high underlying land value.”

“Our recent experience in Western Australia, has yielded strong investor enquiry for these assets when offered via a comprehensive and robust Expression of Interest marketing campaign. This strategic approach has enhanced the potential for achieving a superior outcome in the sale of this asset class,” Mr Cash concluded.

Mr Austen said “Looking forward, the service station sector is poised for a resurgence as macroeconomic conditions improve. As the market stabilises, investors focused on long-term value will find stations with robust fuel sales and prime locations especially appealing in Western Australia. Those seeking steady income will be attracted to stations with favourable lease terms and guaranteed rental growth. Given its essential nature, the service station sector remains a solid investment.”

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