Savills Research's second quarter
Australian Retail Insight report has revealed that national retail turnover has grown by 2.9% in the 12 months to June 2013. This represents a slight improvement on the 2.8% increase in retail turnover to the same period in 2012.
According to the report, the retail property sector has proven to be the most resilient commercial property sector since the global financial crisis, when compared to the industrial and office markets.
Savills recorded $5.3 billion of retail property transactions nationally in the year to June 2013, up from $3.9 billion in the previous year.
According to Tony Crabb, Head of Research for Savills Australia, the outlook continue to look favourable.
“The remainder of 2013 and 2014 holds reasons for greater optimism – the yields on offer in investment markets are more compelling as returns on fixed interest products dwindle.”
“Private investors have been concentrating on initial yields as the driving force for investment rather than focusing on total returns” he said.
The report suggests that despite facing some structural issues, like the increasing impact of online shopping, the cyclical issues fronting the retail sector are starting to move in its favour.