New houses, new renovations and the pursuit of home comforts while working from homehave kept the once-unloved large format retail sector chugging along.

Investment deals are being struck at record low yields and occupancy rates are at their peak.

While there are signs of slowing consumer demand across the country, Australian Bureau of Statistics data for May shows spending on household goods and furniture in Victoria rose 17.7 per cent over the past year.

Research from the Large Format Retailers Association and consulting group Deep End Services shows the large format market makes up 25 per cent of total retail sales, with Victoria accounting for $22.95 billion of a $92 billion national total and NSW a further $29 billion.

Testing the investment market is the biggest Bunnings warehouse in the country, a $100 million complex in Hoppers Crossing that is shared with an Amart furniture store.

Records show the 21,670 square metre centre on 221-231 Old Geelong Road is on a 55,000 square metre site and returns $4.28 million a year.

Burgess Rawson agent Billy Holderhead, who is handling the expressions of interest campaign, said there is plenty of interest from both institutions and private wealthy investors although rising interest rates had cooled some potential buyers.

“Many investors and REITS too — it’s their core business — are not going to stop,” Holderhead said. “The institutions will continue to move money around, though the cost of funding has jumped a lot. What else are you going to do with your money? You can invest money in cash, but it won’t return much.”

At the other end of the scale, a Rugs Galore on the retail “golden mile” at 214-218 Whitehorse Road, Blackburn, sold for $5 million, setting a new benchmark yield of 3.79 per cent.