Australia Retail Figures Q3 2024

Key Points:

• Retail sales jumped in August, recording an increase of 0.7% m-o-m and 3.1% y-o-y. This increase in spending was off the back of a warm end to winter, driving sales in summer clothing and outdoor goods. Department stores saw the largest increase in sales of any category (1.6% y-o-y)  followed by clothing and footwear retailing (1.5% y-o-y).
• Consumer sentiment dropped to 84.6 in September 2024 from 85.0 in August, amid ongoing cost-of-living pressures. Consumers are more confident around interest rates, however, have concerns around future employment prospects.
• Net face rents grew across all sectors in Q3 with large format assets recording the highest growth of 3.5% q-o-q. Super prime CBD assets saw just 0.1% q-o-q with continued pressures on CBDs limiting rental growth.
• Although most retail asset classes saw some yield expansion during Q3, the rate of increase is starting to slow. Neighbourhood centre yields were flat while regional centre yields increased 11bp q-o-q.
• In Q3 2024, there were 27 retail transactions totalling c.$2.143 billion. Retail transaction volumes in Q3 were 41% higher than Q3 2023.