In 2022, the slow adoption of electric vehicles in Australia led to over $1 billion in petrol station property sales, a 50% increase from the previous year. While some operators are starting to pivot their service stations to modernise their offerings, the stable income streams from petrol station assets continue to attract savvy buyers, particularly experienced investors, developers, and private syndicates.
Yields in 2022 averaged 5.9%, an increase from 2021’s average of 4.4% for metropolitan assets and 5.1% for regional assets, which is likely to lead to more owners bringing their assets to market in 2023.
Petrol station assets have evolved to include greater food and convenience offerings, growing the average custom time, as the demand for electronic charging is expected to change the way people interact with service stations.
Despite a 65% increase in electric and hybrid vehicle sales in 2022, only 3.4% of new car sales until September were EVs or hybrids, and electric vehicles currently only account for 0.3% of registered vehicles on Australian roads.
The slow delivery of vehicles, limited fast charging facilities, and overall rising cost of energy remain roadblocks in the rapid rollout of these vehicles. However, operators like Ampol and BP are beginning to offer fast charging stations within their establishments, and petrol station sites, often located in main road and corner locations, have high development potential after remediation, creating possible exit strategies for owners.