The closure of a Commonwealth Bank branch in Bridge Street is not indicative of a downturn in the real estate market, say estate agents, but rather a change in retail overall.
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The Ballarat East branch of the Commonwealth Bank will close as a bricks and mortar operation on May 10, says the bank's management.
The closure follows a 32 per cent decline in transactions over the past five years. The Commonwealth Bank says its customers are increasingly choosing other banking methods such as mobile, online and phone banking services, rather than going into an actual branch.
Managing director at Colliers International Richard Wright says the closure of a bank branch is no indication necessarily of a downturn in trade overall, citing a healthy demand for commercial properties in Ballarat overall and strong interest from both Melbourne and local investors.
Look, this closure is a Pitt Street or Collins Street decision; it's not about the mall itself
- Richard Wright, Colliers International
"There is a very strong demand for well-positioned property in a good condition," Mr Wright told The Courier.
"Yes, it's an opportunistic market; people are holding off to get the property they want, but we are not getting the highs and lows that are happening in Melbourne."
He says the Bridge Mall precinct, where the Commonwealth Bank branch is located, has its own peculiar problems, but bigger retailers in that area are doing well.
"Look, this closure is a Pitt Street or Collins Street decision; it's not about the mall itself," Mr Wright said.
"Some of the smaller retailers have not done so well there in recent times, but that is about the transformation of retail overall. That bank property will sell, and there'll be an opportunity to transform the building into something else, within the Bakery Hill precinct plans. It might take some time, but it will happen; it will get a new lease of life."
Mr Wright referred to the opening of the new Provincial store on Sturt Street as an indication of the confidence that remains in property.
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"We sold that building to Provincial; it was previously owned by Crockers. That company has signalled the confidence it has in regional Victoria; it owns 30 stores across Australia. It's the way they roll."
A Commonwealth Bank spokesperson acknowledged older customers may have concerns about the impending closure, saying staff would be available to familiarise them with the options available to them.
Other branches of the bank are at Sturt Street Ballarat, 650m away, and Ballarat West, said the spokesperson; while customers can continue to complete transactions at the Australia Post outlet at 26-36 Humffray Street North on weekdays.
A Commonwealth Bank ATM will remain in Ballarat East, said the bank spokesperson.
