Quarter-on-quarter rent growth is positive

• In Queensland, retail turnover increased 0.5% month-on-month in October 2024. Seasonally adjusted retail turnover reached AUD 7.5 billion in October, an increase of 3.9% year-on-year.
• New store openings delayed by extended negotiation periods between landlords and tenants.

New retail stock of 3,000 sqm delivered in Q4 2024

• The redevelopment of Ipswich CBD has completed, the 3,000 sqm Nicholas Street Precinct now features a Cinema and entertainment space, more retailers are expected to take space in 2025.
• Annual retail completions in 2024 reached 81,600 sqm, below the annual 10-year historical average of 124,100 sqm. Project delays are affecting the retail supply pipeline.

Quarterly investment volumes total AUD 309.2 million

• Rent growth in South-East Queensland has been positive in H2 2024, given positive re-leasing spreads. Regional (1.45%) and sub-reginal (1.40%) rental growth was highest among the sub-sectors.
• Yields in the neighbourhood sub-sector have tightened 12.5 bps to a midpoint of 6.38%. All remaining sub-sectors were unchanged.

Outlook: Low supply trend expected to continue in the near term

• Discretionary spending is likely to remain subdued in the near term as the cash rate remains elevated.
• New retail development may remain below long-term averages, with 26,000 sqm on track to complete in 2025.