One of the most significant changes in the South African retail landscape over the past few decades is the increase in the number and size of retail shopping centres situated in, or close to, residential areas. These shopping centres have the potential to generate both positive and negative externalities which may, in turn, be capitalised into adjacent residential property prices. However, policy makers are still unsure as to the effect of commercial land uses such as shopping centres on surrounding property prices. This study sheds light on this issue by considering the relationship between the Walmer Park Shopping Centre, situated in Nelson Mandela Bay, and surrounding residential property prices. The results of this study indicate that, in the case of the Walmer Park Shopping Centre, a statistically significant correlation between proximity to the mall and adjacent property values is present.