Population growth 'driving retail centre expansion' in Melbourne, Geelong

An artist's impression of the 47,000-square-metre redevelopment planned by QIC at Eastland shopping centre at Ringwood.

Population growth is driving continued retail development across Melbourne and Geelong with about 250,000 square metres of space expected to be completed in the next two years.

Savills Australia's Victorian research chief Glenn Lampard said much of the development involved expanding existing large shopping centres rather than new projects.

"The majority is through expansion of existing centres. A lot of these centres have been performing quite well through this period. You rarely walk around a regional shopping centre and see empty sites," Mr Lampard said.

Victoria's population grew by 107,900 people (1.9 per cent) in the 12 months to December 2013, bringing its total to 5.79 million, according to the Australian Bureau of Statistics.

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"We have been fortunate in the population growth. You don't need people to spend more when you have more people spending. Retail spending has been subdued but it hasn't gone backwards," he said.

Setting up new households means people spend money on fitting out new kitchens and laundries at bulky goods stores.

Three new projects in Mentone, Pakenham and Altona, totalling 60,000 square metres, are due to be finished by mid-2015.

A further 70,000 square metres of space in the large regional shopping centres will open for business in May 2016. The Pacific Group is opening a 23,496 square metre expansion to Werribee Plaza and building works are under way at QIC's 47,000 square metre redevelopment at Eastland in Ringwood.

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Population growth 'driving retail centre expansion' in Melbourne, Geelong