Australia’s retail transaction volumes breach 10-year historical average in Q1

Q1 volumes hit AUD1.3b, surpassing the 10-year average of AUD879m. 

According to a JLL report, reflective of industry-wide construction issues, retail project completions in Australia totalled 42,400 sqm across six assets. 

Landlords remain cautious, avoiding large-scale centre renovations and scaling down construction projects. Project commencements in Q1 2023 equated 46,300 sqm across five new builds and two refurbishment projects. 

Here’s more from JLL:

Mixed rental movements among sub-sectors were recorded in Q1 2023. On an annual basis, rental growth was recorded for all sub-sectors excluding the CBD and regional sub-sectors which declined by 9.8% and stabilised respectively. 

Transaction volumes totalled AUD 1.2 billion in Q1 2023, above the historical 10-year average of AUD 879 million of Q1 sales volumes. Investor demand was concentrated in the sub-regional sub-sector, composing 47% of total sales volumes. Neighbourhood centres accounted for 28% while the sale of a regional centre accounted for 15%. The remaining balance was split between “other” (8%) and large format retail assets (2%).