Sydney Retail Figures Q1 2025

Key Points:

• New South Wales GSP increased 1.2% in 2023-24, following a rise of 4.2% in the previous year.
• NSW retail turnover increased 0.5% m-o-m in February to a total of $11,468m. 
• The opening of Sydney Metro and Parramatta Light Rail Stage 1 is driving stronger CBD foot traffic and enhancing connectivity across key retail and suburban precincts.
• Development supply remained limited in Q125 with just c.3,000 sqm in completions, this will continue to support rental growth moving forward.
• Sydney CBD retail vacancy in H2 24 dropped 29bp to 7.1%, driven by the return of workers, tourists and international brands securing prime spaces. 
• Over the quarter, rents stabilised for super prime CBD assets and shopping centres, while LFR’s saw an increase of 3.5%.
• Yields remained broadly flat across all asset classes in the March quarter except for sub regional and neighbourhood shopping centres that compressed by 5bp and 6bp, respectively.