Sydney Retail Market Q3 2023

Key Points:

• New South Wales GSP increased 1.8% in 2021-22, following a rise of 2.6% in the previous year.
• Retail sales increased by 1.3% q-o-q in September, the highest quarterly growth recorded this year.
• NSW is expected to be a significant beneficiary of population growth, with a 11.7% or 970,000 increase expected between 2023 and 2033.
• New floorspace added to the market over the quarter totalled c.7,000 sqm.
• Sydney CBD retail vacancy softened again over 1H23, now at 10.8%, stripping the city of its title as tightest vacancy in the country.
• Sydney average Prime CBD net face rents increased by 1.5% q-o-q, whilst Super Prime and Secondary assets remained stable.
• A total of AUD 187 million of investment sales has been recorded in 3Q23 across 4 transactions (for sales > AUD 5 million).