Research - MARCH 2, 2017

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Australian retail property sales activity falls 14% in 2016

by Andrea Waitrovich

Australian retail property investment volumes declined by 14 percent in 2016 from 2015 levels, according to Cushman & Wakefield. The decline was driven by a lack of available stock rather than a fall in demand. Subregional centers, in particular, experienced a significant drop in transaction activity.

In 2017, demand is expected to remain strong as retail property’s relative value proposition continues. More stock is expected to come to market than in 2016, bringing with it increased transaction volume liquidity as the spread between bond and property yields contracts, with increases in the former and ongoing compression in the latter.

Established owners are likely to sell noncore assets and recycle capital into existing assets where the return profile is likely to be stronger than purchasing assets at market value, reports Cushman & Wakefield. Equally, active traders are likely to dispose of assets to seek new opportunities. This will provide opportunities f

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