Sydney Retail Figures Q2 2026

Key Points:

• NSW household spending increased 4.8% y-o-y in May 2026, demonstrating the resilience of consumer demand despite ongoing cost-of-living pressures.
• Development activity remained subdued in Q2 2026, with only c.580 sqm of new supply delivered. This reinforces the structurally constrained supply environment, which continues to support rental growth and outperformance across the market.
• Sydney CBD retail vacancy declined a further 78 bp in H2 2025 to 4.3%, marking the fifth consecutive half year of tightening since H1 2023, driven by sustained leasing activity across core precincts and improved occupancy in arcade, strip and centre retail formats.
• During the quarter, CBD super-prime net face rents recorded the strongest growth, increasing by 3.3%, followed by LFR assets at 0.4%. Rental levels across all other retail asset classes remained stable.
• Quarterly yield movement was modest, with neighbourhood centres compressing 6 bp and LFR expanding 4 bp, while other retail sectors remained stable. Over the year, regional, sub-regional and neighbourhood centres tightened by 14 bp, 20 bp and 13 bp, respectively.