Annual RevPAR declined by 2.4% to $137 for the year ending September 2019. ADR declined 0.7% to $186 for the year ending September 2019. National occupancy declined by 1.7% to 73.8%

Sales volumes YTD are ~$18 billion across 155 transactions, a ~50% increase on the same period in 2018 ($12 billion). Cost of debt to investors has in many instances fallen to below 2.75% in part due to the three 25bps interest rate cuts. Top prime CBD performers were Perth and Brisbane, registering quarterly net effective rent (NER) growth of 3.4% and 1.4% respectively.

Industrial GVA was negative at Q2 2019 (-3.0% y-o-y), the lowest rate of growth since the GFC. Average industrial rents were relatively stable over the quarter in all markets except Perth. Super prime net face rents fell -0.8% q-o-q, with the 5.4% q-o-q decline in Perth dragging down the Australian average. Super prime yields remained flat in all markets except Adelaide, supported by the abolition of stamp duty and an influx of investors priced out of the Melbourne and Sydney markets.

Retail sales grew by 2.5% y-o-y (3mma) in the year to August 2019. National retail rents remained broadly stable in Q3 2019. Whilst prime sites continue to experience strong demand, letting up periods in secondary locations have increased in comparison to 12 months previously. In October, consumer confidence dropped to 92.8 from 98.2 in September.