Over the next 12 months, 186 new petrol stations will be built nationally despite the rise in electric cars entering the market.
According to commercial real estate business CBRE’s petrol station specialist, Joseph Du Rieu, there is a strong demand for petrol station assets from both private and institutional investors. The number of new petrol station development projects is set to create ongoing investment opportunities across Australia.
“Given the growth, security and prominence of these landholdings, and the modern technology around the environmental aspect, investors recognise the retail and commercial value of these sites,” Mr Du Rieu said.
Highlighting this investor demand was a recent sale of a new 7-Eleven service station in Werribee, Victoria, which attracted both domestic and international buyers. It sold for $5.93 million to a private Melbourne-based investor on a yield of 5.04 per cent, according to the CBRE.
The impact on petrol prices
An increase in the number of petrol stations is something that would typically reduce pressure on petrol prices.
However, according to Mr Du Rieu, given these developments are being staggered, prices are likely to remain steady or in favour of vendors.
Electric cars, a potential for growth
The proportion of electric vehicles in production is expected to reach 50 per cent by 2030.
Despite this translating to less than 14 per cent of cars being electric, it has been enough for some major energy companies to include fast charging terminals at their petrol stations.
According to CBRE, this has the scope to impact petrol station profits and customer growth positively.
“With the potential for implementation of fast charging services in future Australian petrol stations, operators will likely continue to grow their retail offerings and services they provide while customers charge their cars,” Mr Du Rieu said.
