Retail turnover continues to grow, with Black Friday and Christmas spending driving Q4 growth

• Year-on-year retail turnover growth in NSW was 2.3% as of October 2024, below the national average of 3.3%.
• Luxury brands were active in the leasing market, with two major luxury stores (Dior and Christian Louboutin) opening in Westfield Bondi and Westfield Sydney, respectively.

Annual supply is the lowest on record

• No new retail space was added to stock in the quarter, down from 21,500 sqm in the previous quarter. Over the year, 39,200 sqm of new stock was added, the lowest level of supply JLL has recorded since 1989.
• The low supply trend continues nationally, with several developers delaying construction despite securing DA approval.

The midpoint neighbourhood yield tightens by 25 bps in Q4 2024

• Quarterly transactions totalled AUD 1.28 billion across five assets, with the AUD 900 million sale of Westpoint Blacktown accounting for the majority of this amount.
• LFR rents recorded the most significant year-on-year increase of 3.39%.

Outlook: Favourable economic forecasts are expected to revive the low supply experienced in 2024

• An uptick in supply is forecast for 2025, albeit from very low levels in 2024.
• Regional and sub-regional yields are forecast to remain stable over the next four quarters before compressing in Q1 2026.