Retail sales grew by 9.8% y-o-y (3mma) in the 12 months to February 2021.

Leasing deal volumes remained constrained but incentives have risen and net face rents have softened slightly. There have been signs of a pick up in activity.

Consumer confidence has shown a strong recovery from its trough in April, now in positive territory. This has been driven by stronger than expected employment outcomes.

Potential headwinds to demand include the end of jobkeeper and jobseeker.

Yields held steady in Q1 for prime CBD, totalling 35bps yield expansion since Q4 2019. Yields were also unchanged for regional shopping centres, totalling 256ps since Q4 2019.