Australia Retail Figures Q1 2023

Key Points: 

• Retail sales grew 6.4%y-o-y and 0.2% m-o-m in February with monthly growth starting to flatten out.
• Consumer sentiment increased by 9.4% m-o-m to 85.8 in April 2023, This is the highest level recorded since June 2022 buoyed by a pause in interest rate hikes by the RBA.
• Net face rents were broadly stable in most sectors with regional and sub-regional centres recording the largest q-o-q increase (0.6% and 0.2% respectively). While secondary CBD rents fell 2.3% over the quarter reflecting continued challenges for CBD space outside prime locations.
• Yields softened across all asset classes except super prime CBD (stable). Yields are expected to see a small amount of further expansion in 2023 in line with the rising cost of debt.
• Transaction volumes in Q1 2023 totalled $1.35b across 21 transactions. Shopping centres dominated transaction activity with 92% of all activity, led by the sub-regional sector which saw $618m worth of transactions.