Q3 2023 Australia Retail Figures Report

Key Points:

• Retail sales grew 1.5% y-o-y and 0.2% m-o-m in August with monthly growth continuing to flatten amidst dampened consumer sentiment.
• Consumer sentiment increased by 2.9% m-o-m to 82.0 in October 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 stability in most markets, with the exception of Melbourne, which continues to see declines. Nationally, average rents grew across both shopping centre and LFR categories on a q-o-q basis, however individual markets continue to see mixed results.
• Yields continued to soften across all asset classes. Further yield softening is expected in line with the rising cost of debt, however at a decreasing rate as investor confidence recovers.
• In Q3 2023, 14 transactions amounted to a total of $573.54 million in transaction volumes. Shopping centres continue to dominate transaction activity, comprising 61% share by transaction value.