Sydney to welcome 33,300sqm of new retail space by year-end | Real Estate Asia

Sydney to welcome 33,300sqm of new retail space by year-end

Four of the six projects to be completed are neighbourhood centres.

According to a JLL report on Sydney’s overall retail property market, stage 2 of the Eastern Creek Quarter development and Quay Quarter reached completion in 2Q22, adding 19,000 sqm of new retail space into the market.

The report added that the supply pipeline in the near-term is low, with six projects currently under construction and expected to be complete by the end of 2022, delivering 33,300 sqm of retail space. Four out of the six new projects are neighbourhood centres, one is in the CBD and one is a refurbishment/extension to a regional centre.

Here’s more from JLL:

The rental declines recorded for the majority of subsectors throughout the pandemic have continued to stabilise in 2Q22 with the exception of CBD rents. Steep rental declines are still being recorded in CBD retail despite Sydney recording significant increases in foot traffic and higher office occupancy in 2Q22.

Following significant compression throughout 2021, yields remained steady across all subsectors for a second consecutive quarter.

Outlook: Costs to affect businesses and development feasibility

Cost pressures for businesses (minimum wage increase, higher input prices for manufacturing and supply chain congestion) are weighing on retailer profitability, which will consequently slow leasing demand and dampen rental increases over the short-to-medium term.

Supply chain congestion and labour shortages are likely to extend the build time for developments over the short-to-medium term, with many projects likely to be scaled back for feasibility purposes.

Follow the link for more news on

Join Real Estate Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

How Metland Indonesia deals with weaker residential purchasing power
The real estate firm continues to expand with residences that are attractive to consumers because of pricing, the ‘growing house’ concept, and sustainable features.

Event News

Event News

Real Estate Asia Awards 2023 Winner: Henderson Land Development Company Limited
Henderson Land Development Company Limited wins big at the Real Estate Asia Awards 2023 taking home 3 notable accolades, the Developer of the Year, Mixed-Use Development of the Year, and Residential Development of the Year awards for Hong Kong.
Real Estate Asia Awards 2023 Winner: Henderson Land Development Company Limited
Henderson Land Development Company Limited wins big at the Real Estate Asia Awards 2023 taking home 3 notable accolades, the Developer of the Year, Mixed-Use Development of the Year, and Residential Development of the Year awards for Hong Kong.