Adelaide Retail Figures Q3 2024

Key Points: 

• Retail sales growth in August 2024 accelerated to 2.3% y-o-y growth, up from the average 1.5% y-o-y growth recorded between March to July 2024.
• Approximately 22,000 sqm of new retail development supply was recorded in Q3, all within the large format retail centre category.
• Adelaide’s overall CBD vacancy levels continued to improve in H1 2024, declining to 8.8% from 9.4% in H2 2023.
• Net face rents were stable q-o-q across all retail categories. Y-o-Y regional centre face rents have increased by 6.9% and large format retail has increased by 4.1%.
• Retail Investment transaction volumes YTD total c.$710 million, well above the 10-year average of c.$350 (for transactions ≥ $5 million). The sale of Westfield West Lakes for $174.25 million was the key transaction from Q3 24.
• Regional centre yields softened by 12.5bp q-o-q to 7.20%. Large format retail compressed by 6 bps q-o-q to 6.19%