Savills Research Australia Briefing National Retail February 2018 Report Contents Executive Summary 2 Key Market Indicators 4 Retail Trade 6 Regional/Sub-Regional Centres 8 Neighbourhood Centres 10 Large Format Retail 11 NSW 12 VIC 14 QLD 16 WA 18 SA 20 Outlook 2018 22 Key 2017 Transactions 23 Key Contacts 26 Savills Research | Briefing National Retail Associate Director – Research Katy Dean
[email protected] Senior Analyst– Research For our latest national reports, visit savills.com.au/research Peter Sutherland To join Savills Research mailing list, please email
[email protected] [email protected] Executive Summary Many of the key drivers that have underpinned the Although investment volumes in 2015 got close to $9 billion, performance of Australia’s retail property market since investment in 2017 ($5m+) outshines any level seen in the 2015 are unchanged. Debt remains affordable and last decade. Almost half of the total value invested was in populations continue to grow, particularly on the eastern the $200 million + segment, a trend which hasn’t been seen seaboard. The weight of capital targeting property and the since 2007. international search for yield has yet to lose any significant While large institutional funds and trusts, as well as foreign momentum, rather conditions are shifting globally and and private investors, have all played a part in the hunt for markets that were previously off the agenda for political yield in recent years, there has been a noticeable change in or economic reasons are now being considered again. strategy of net sellers in most markets to sell down non-core Global demand for retail assets is clearly evident with assets.