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Australian Figures Quarterly Market Report
Retail 2Q 2023
July 27, 2023 3 Minute Read
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- Retail sales grew 4.2%y-o-y and 0.7% m-o-m in May with monthly growth starting to flatten out.
- Consumer sentiment increased by 0.2% m-o-m to 79.2 in June 2023. The index has remained below 90 since the beginning of the year, similar to the trend seen in the 1980’s/1990’s recession.
- Net face rents varied significantly by market this quarter. In general, super prime CBD experienced an increase in some markets, while prime and secondary saw slight decreases. Rents for regional shopping centre's grew, while rents for sub-regional, neighbourhood, and large format properties remained stable.
- Yields softened across all asset classes. It is expected that yields will experience a slight increase in 2023 in line with the rising cost of debt.
- In Q2 2023, 20 transactions amounted to a total of $1.04 billion in transaction volumes. Shopping centre's dominated transaction activity, accounting for 94% of all activity. The regional sector saw the highest value of transactions, totalling $564.5 million.