Adelaide Retail Figures Q2 2024

Key Points:

•  South Australian retail sales reached $2,322m in May, showing no change quarter-on-quarter however an increase of 1.3% year-on-year.
• No new retail supply was completed over Q2 2024, as majority of supply in 2024 is scheduled for completion in the second half of 2024, consisting of LFR assets. Supply for 2024-2026 is expected to exceed the five-year average.
• Regional net face rents outperformed other retail assets, on a year-on-year (8.4%) basis. On a quarter-on-quarter basis rents across all retail asset types held steady.
• In line with stable rents, yields recorded minimal movement quarter-on-quarter, with slight expansion seen only amongst regional (+5bp) and neighbourhood (+2bp) assets. Regional centres saw greatest expansion year-on-year, increasing by 42bp.
• Retail sales over the first half of 2024 have reached $515m, already exceeding sales activity in 2023. The sale of Westfield Tea Tree Plaza (50% share) was the largest transaction to occur in the first half 2024.