APPD Market Report Article
Sydney
August 23, 2024Quarter-on-quarter rent growth is stable
- The mismatch in landlord-tenant rent expectations continue to limit rent growth.
- Month-on-month demand in New South Wales in July 2024 (-0.1%) was below the national average (+0.6%).
New retail stock of 40,700 sqm expected by year-end
- No new retail completions were recorded in Q2 2024; this follows the addition of 16,700 sqm to the market in Q1 2024.
- New retail stock of 40,700 sqm across nine developments is expected by year-end. Most of the new stock (44%) is concentrated in the neighbourhood sub-sector.
Quarterly investment volumes total AUD 731.6 million
- All sub-sector yields are stable from the previous quarter.
- Stockland divested Stockland Glendale to IP Generation for AUD 315 million, the largest transaction in H1 2024.
Outlook: Project delays expected to continue affecting the supply pipeline
- Labour shortages and construction costs are expected to increase project delays and limit completions.
- Retail spending is also expected to further moderate as the volatile cash rate outlook fosters poor consumer sentiment.
