APPD Market Report Article
Sydney
November 19, 2024All sub-sectors, excluding CBD, record quarter-on-quarter rent growth
- Rolling annual retail turnover in NSW was 0.7% as of August 2024, below the national average of 1.8%.
- Quick service restaurants are opportunistically expanding into pad sites and stores near transport routes.
Project completions rebound from the previous quarter
- New retail space totalling 22,500 sqm was added to stock in the quarter, up from no completions the previous quarter.
- An additional 20,000 sqm of new space is expected by year-end.
The midpoint neighbourhood yield tightens by 25 bps in Q3 2024
- Quarterly transactions totalled AUD 184.6 million across six assets, 70% below the ten-year average.
- The neighbourhood midpoint yield tightened 13 bps from the previous quarter.
Outlook: Retail demand remains stable despite retail spending slowdown
- Project completions in 2025 are expected to reach 33% above the 2024 expected total.
- Market yields for regional and sub-regional yields are forecast to remain stable.
