A major $86 million transaction in Melbourne’s retail sector is being viewed as a strong indicator that Victoria’s commercial property market is regaining momentum.

The Chadstone Homemaker Centre, located adjacent to Australia’s largest shopping destination, has sold for $86.025 million following an on-market expressions-of-interest campaign.

The sale comes as BWP Trust continues to rebalance its portfolio, following its recent $48 million acquisition of HomeCentre Morayfield in Queensland.

The large-format retail asset is anchored by Bunnings Warehouse and includes other national retailers such as Officeworks and Freedom, enhancing its appeal to institutional and private investors alike.

According to Mr Dowers, the transaction marks a turning point for capital flows back into Victoria.

“Enquiry for Melbourne-based retail assets is deepening, competition is returning, and pricing expectations are now better aligned,” he said. “We expect transaction activity across Victoria to increase materially this year.”

The brokerage attributes the sector’s resilience to strong population growth and ongoing infrastructure investment.

Victoria accounted for 20.2 per cent of Australia’s total commercial property sales, contributing to a national transaction pool of $85.58 billion.

Several landmark retail transactions occurred throughout 2025, including the $678 million sale of Queensland’s Logan Hyperdome and the sale of a 50 per cent stake in Melbourne’s Northland Shopping Centre to Nikos Property Group for $385 million.

Momentum has continued into 2026, with a 50 per cent interest in Adelaide’s Westfield Marion the city’s largest shopping centre now listed for sale on behalf of Singapore-based private investment group Cuscaden Peak, with pricing expectations exceeding $650 million.

 “New supply is forecast to fall between 20 and 50 per cent below historical averages for the remainder of the decade,” Mr Chopra said. “As stock becomes scarcer, investors and occupiers will face increasingly limited alternatives.”

Mr Chopra added that shopping centres in Sydney and Melbourne are particularly well positioned for future growth.

Created by Mushi and the Mayfair Team

0416 890 664 | ✉️ mushi@mayfairestateagents.com.au