APPD Market Report Article


August 26, 2022

Andrew Quillfeldt, Senior Director - Research, Australia


AUD 1,240


Surprisingly robust growth in total spending (online and offline)

  • Retail spending growth in South Australia (SA) has increased by 4% y-o-y, which was the highest y-o-y growth rate recorded since Nov 2021.
  • Opportunistic national and global retailers, such as Uniqlo, JD Sports, Supre, Industrie, Rebel Sport, Foot Locker and Dymocks, have taken the opportunity to expand into Adelaide.

No completions recorded over the quarter

  • The future supply pipeline includes seven projects under construction, totalling 36,200 sqm.
  • Vacancy rates have tightened, with Adelaide’s regional, sub-regional and CBD sub-sectors all recording decreasing vacancy rates in 2Q22.

Yields were stable over the quarter

  • Average rents have increased q-o-q across all sub-sectors in 2Q22.
  • Yields were unchanged across all sub-sectors for the quarter.

Outlook: Investment demand likely to be impacted by macro-uncertainty

  • With multiple increases in the official cash rate over the last six months, coupled with inflationary pressures as a result of geopolitical conflicts, consumer spending is expected to moderate over the short term. This may result in a slowing of retailer expansion activity over the balance of 2022.
  • Investment demand will likely slow over the next 12 months. However, supermarket-anchored neighbourhood and sub-regional centres in Adelaide are expected to retain a level of demand from buyers.

Note: Adelaide Retail refers to Adelaide's overall retail market.

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