Perth Retail Figures Q1 2024

Key Points:

• Retail sales continued to rise modestly in February 2024, recording a growth of 0.3% Q-o-Q and 1.6% Y-o-Y. Retail sales growth was primarily driven by Clothing Retailing 4.2% (M-o-M) and Department Stores 2.3% (M-o-M), with Cafes & Restaurants increasing by 0.5%.
• Consumer sentiment fell to 82.4 in April 2024 from 84.4 in March, amid ongoing cost-of-living pressures. Despite a brief improvement in February, consumer sentiment in March and April indicates that progress continues to be slow.
• Super Prime CBD rents remained stable across all markets, except for Perth which saw a slight increase. Rental growth in shopping centers slowed, with only marginal growth in most markets. Prime LFR net face rents either increased or remained stable in most states compared to the previous quarter, except for Melbourne which saw a decline.
• All retail assets experienced a modest increase in yields over Q1 2024. We are seeing growth slowing, indicating stabilisation compared to last year.
• In Q1 2024, there were 14 retail transactions totalling c.$1,215 million. Shopping centres continued to dominate transaction activity, comprising 79% share by transaction value.