The $22.3 million sale of a major retail property in Queanbeyan, following Riverside Plaza changing hands for $62 million last year, shows confidence is continuing to flow from new residential developments, say property commentators.
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Andrew Palmer of commercial agent Knight Frank who negotiated the Kmart sale, said the new Googong subdivision now under construction was helping Queanbeyan become a high growth and affluent trade area. The city's 40,000 population would rise to around 66,600 by 2026 with the addition of 5500 new residential lots in Googong and 2200 in West Queanbeyan.
Sandran Pty Ltd, an established investor in the Canberra region, brought Kmart Queanbeyan from LaSalle Funds management. Kmart has a 20 year lease on the Morisset property which expires in 2032 .
A former business council president and Queanbeyan councillor, Jamie Cregan, said businesses had come through negative impacts from big box retailers like Woolworths and Costco opening at Majura Park.
During Canberra Airport's expansion of retail and commercial space in 2011, Queanbeyan mayor Cr Tim Overall said he had been approached by 10 business owners concerned about the impact from the new Costco, Big W and Dick Smith stores.
Four years later, Cr Cregan says people are coming back to Queanbeyan's shopping centre. New arrivals at Googong are starting to be a part of the community. "As a result, we are seeing increase in demand for retail outlets," he said.
The Joint Regional Planning Panel's approval of Tralee's concept development application would also bolster business confidence that spending on establishing new homes would continue, Cr Cregan said.
"Queanbeyan economically is looking better and better through these developments and we should be trying to capitalise on people wanting to spend their money in Queanbeyan," Cr Cregan said.
Queanbeyan Business Chamber's vice president and retail spokesman Steve Stavreas, who has shops in Queanbeyan and Canberra, said several issues, mainly the weak economic conditions in Australia, and political decisions affecting employment in the ACT and Queanbeyan, were causing tight trading conditions.
"But in my many years in retailing I am seeing a constant evolution of retail, it is not standing still, I think all research is showing a return to bespoke retailing where people are coming back for a retail experience, and Queanbeyan is a warm, welcoming place to do business."
Mr Stavreas said main street businesses still suffered because traffic deterred pedestrians. He hopes a recent design competition will address these issues.
Queanbeyan Business Chamber's Steve Bartlett said the sale of large format retailers had more to do with fund managers' financial plays than the health of retailing, and while new residential subdivisions would stimulate activity, more work was needed to revive the main street.
"The challenge is to make down town attractive enough, the council has a real challenge to make it attractive for people and needs to get moving," Mr Bartlett said.
Cr Cregan said the council had called for expressions of interest for traffic engineers to make the main area more pedestrian friendly. "I want to see a good result so that access in and around and through the CBD is viable. We have seen $50 million investment from the state and federal governments for Ellerton Drive extension which will take a lot of heavy vehicles out of the main street," he said. "We can make it more pedestrian friendly in terms of taking trucks off the road and reduce road noise."
Cr Cregan is expecting a feasibility report soon which will recommend a new site for the long sought after cinema, which would create opportunities for restaurants, cafes and other retail outlets to keep people shopping in Queanbeyan.
