Sydney Retail Figures Q4 2025

Key Points: 

• NSW household spending increased 6.1% y-o-y in November, reaching a total of c. $25.1b.
• The opening of Sydney Metro has improved CBD access, boosting foot traffic and supporting demand for well-located retail space.
• Development activity remained subdued in Q4 25, with just c.11,000 sqm in completions recorded. Ongoing supply constraints are expected to support further rental uplift.
• Sydney CBD retail vacancy declined by 210 bp in H1 2025 to 5.0%, driven by the removal of a number of stores at MetCentre from the total stock count, some of which were vacant, ahead of their planned conversion to podium space. 
• Over the quarter, super prime CBD rents increased by 3.7%, regional shopping centres rose 1.5%, while sub-regional centres, neighbourhood centres and LFR’s rose by 1.3%, 0.0% and 1.8%, respectively.
• Yields compressed across most retail asset classes in Q4 25, including regional and sub-regional shopping centres and LFR’s, which saw a compression of 9 bp, 20 bp and 4 bp respectively.