Major supermarket chains have faced criticism for "land banking" but in some parts of Australia, plans are already afoot to open new stores.
Woolworths has struck a deal with a residential property developer to turn a vacant Brisbane site into a multi-storey complex including a supermarket.
Mosaic Property says early works on the Kangaroo Point site will begin in 2025 and the 16-level property should be completed by 2027, with 128 luxury residences offering sweeping city and river views and a rooftop pool.
"This development is not just about reviving an inactive site - it's about creating lasting value for Kangaroo Point and aligning with Mosaic's long-term vision of delivering exceptional, enduring projects," said Mosaic founder and managing director Brook Monahan.
Woolworths' development arm, Fabcot, purchased land for the project in 2020 and 2021 and won approval from the Brisbane City Council for its development in 2023.
Mosaic was selected to oversee the entire development process after a marketing campaign.
Once the project is complete, Woolworths will lease and operate the supermarket under a long-term deal.
"We own and develop land to deliver stores and other facilities to support a growing population," a Woolworths spokesman said.
"Our focus is on better serving communities and providing the food and grocery needs for families across Australia."
It can take five to seven years to deliver new centres and stores, sometimes longer, involving lengthy planning, construction and approval processes, he said.
The Australian Competition and Consumer Commission said in late September it had heard concerns around "land banking" by supermarkets but had not yet formed any view of the issue.
Prime Minister Anthony Albanese and Treasurer Jim Chalmers have suggested that supermarkets hoard land to stop competitors from using locations.
To be clear, the Brisbane site is an inner-city parcel slightly less than a third of a hectare, not a vast parcel of real estate.
