Sydney Retail Figures Q3 2024

Key Points: 

• New South Wales GSP increased 3.7% in 2022-23, following a rise of 2.6% in the previous year.
• NSW retail turnover increased 0.7% m-o-m in August to a total of $11,300m.
• The Sydney Metro development opened in August 2024 which will help support increase foot traffic in the CBD and encourage shorter, convenience-based trips.
• Development supply remained very limited with only c.2,000 sqm in completions, this will continue to support rental growth moving forward.
• Sydney CBD retail vacancy in H1 24 was at 7.4%, 70bps decrease from H2 23 reflecting continued recovery in return to work and tourist numbers in Sydney’s CBD.
• Over the quarter, rents remained stable for super prime CBD assets, while regional shopping centres and LFR saw the highest increases, both rising by 5%.
• Yields remained flat over the quarter across all asset classes.