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Brisbane Retail Market Q3 2023

November 15, 2023 5 Minute Read

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Key Points:

 

  • Queensland has shown early signs of stability, as retail sales have risen by 0.2% Y-o-Y in Q3 2023. Queensland’s household consumption grew 0.3% this quarter, higher than the national average of 0.1%.
  • New floorspace added in 3Q23 totalled 53,492 sqm, up 40.0% on last quarter’s level. With limited new supply of 127,472 sqm coming online over the next two years, in comparison to the pre-Covid historic average of 227,427 sqm in 2018 & 2019. 
  • Queensland retail rental growth has continued to expand across all assets in Q3 2023. Notably, the Prime CBD retail experienced strong effective rental growth of 7.9% Y-o-Y.
  • In Q3 2023, Queensland’s transaction volume fell further, with only two major deals, amounting to a total of $21 million. Neighbourhood Shopping Centre’s continue to dominate transaction activity.
  • Queensland retail asset yields softened further by 20bps in Q323, averaging 6.13%.