Shopping centre owners will need to fill 1,784 new shops by 2020, if an estimated $4.5 billion wave of mall development in Perth comes to fruition.
A report released this week by Y Research showed there were 42 retail projects across Perth expected to be completed between 2015 and 2020, comprising a mix of major shopping centre expansions and new centre builds.
More than half of the development is at the city’s major malls, with Westfield Carousel, Westfield Innaloo, Garden City Booragoon, Karrinyup Shopping Centre, Midland Gate Shopping Centre and Westfield Whitford City all in line for big expansions.
Business News has previously reported that the Westfield centres, owned by Scentre Group, are likely to begin by the end of the year, while Karrinyup Shopping Centre owner AMP Capital is understood to have whittled down a field of potential builders for its expansion to two.
Work at Karrinyup is expected to begin midway through next year.
Y Research chief problem solver Damian Stone said if all the mall expansions were to happen, it would add 24.4 per cent to the city’s retail floor space.
Mr Stone said centre owners were already preparing to fill the space with an influx of international retailers.
Supermarket giant Aldi’s plans to create 70 stores over the next five years will be a handy fillip to retail landlords, while other brands expected to come to Perth include GAP, Sephora, Uniqlo and Under Armour.
Other international retailers including Zara, Topshop, H&M and Williams-Sonoma created significant fanfare upon their entry into the Perth market.
“In addition to international retailers, the current wave of development will create dining precincts and introduce restaurants and taverns into WA centres,” Mr Stone said.
“New service-based retailers will become mainstays of larger regional centres.
“Gyms, childcare centres, medical centres and children’s playgrounds will create daily interaction.”
Mr Stone said he expected shopping centre development to be the main driver of growth in the property and construction sectors for the next half-decade.
“Planned shopping centre developments are forecast to create $750 million worth of investment per annum between 2015 and 2020,” he said.
“Thousands of jobs will be created in the construction and operation of these centres.”
