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ACT retailing in trouble

By johnboy - 8 September 2010 3

The ABC has a story on the falling ACT retail sales as our planning processes pump ever more retail space into the market.

David Rumbens from Access Economics says sales lagged in the June quarter.

“A slowing construction activity, potentially as the fiscal stimulus is withdrawn. Potential for further rate rises may have a greater impact in the ACT than elsewhere,” he said.

“So the retail story going forward in the ACT certainly doesn’t look as strong as we are envisaging nationally.”

On the plus side down the road there is some hope that a hamstrung rainbow coalition will let the public service grow like topsy.

What’s Your opinion?


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3 Responses to
ACT retailing in trouble
Tetranitrate 3:54 pm 08 Sep 10

shaneb said :

There seems to be a popular perception that there is excess retail space in Canberra. There isn’t, especially in regard to spaces that aren’t sub 100 sqm stores and in shopping malls.

You can expect to pay at least $350 per sqm per year for most retail space, which makes the ACT one of the most expensive markets in the country.

Just because it’s expensive doesn’t necessarily mean there’s a shortage, especially when there are large landlords who control non-trivial proportions of the market (ie: the owners of shopping centres, both large and small) – particularly if you consider various areas of Canberra to be at least partially separate markets.

I’m not saying that it’s a terrible monopolistic farce and that the ACCC needs to be
called in though, simply that it would be extremely naive to believe that the market for retail space is perfectly competitive and that ‘high’ prices mean there couldn’t possibly be any non-frictional vacancies.

shaneb 12:06 pm 08 Sep 10

There seems to be a popular perception that there is excess retail space in Canberra. There isn’t, especially in regard to spaces that aren’t sub 100 sqm stores and in shopping malls.

You can expect to pay at least $350 per sqm per year for most retail space, which makes the ACT one of the most expensive markets in the country.

Special G 11:31 am 08 Sep 10

maybe excess retail space can be converted to affordable housing.

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