Australian shopping centres have emerged as the strongest-performing commercial property sector, with investors targeting supermarket-anchored neighbourhood centres as economic uncertainty weighs on discretionary retail spending. Retail property transactions reached about $13 billion in FY2026, representing 42% of the $31.3 billion invested across Australia’s major commercial property sectors, according to JLL Research. Average neighbourhood centre yields tightened by 49 basis points to 5.98%, while average sale prices reached a record $7,160 per square metre. Other deals included the $79 million off-market sale of Tooronga Village and the purchase of Caringbah Shopping Village at a yield below 4%. But only 36 neighbourhood centres are expected to be developed, leaving a potential shortfall of 29 supermarkets.