The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FULL PROGRAM RELEASED FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FULL PROGRAM RELEASED FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
VIEW FULL AGENDADETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
RetailTue 30 Jan 18

Record Yields for NSW Neighbourhood Shopping Centres

44f190c9-0e8c-423c-808d-41f5c44d51be

Sales of neighbourhood shopping centres in NSW jumped 50 per cent in 2017 as record sub-6 per cent yields spark an increase in sales activity.

More than $620 million worth of neighbourhood centres changed hands in New South Wales in 2017, with yields compressing 20 basis points over the past 12 months.

Research conducted by CBRE indicated that the increased level of activity was largely driven by corporate and institutional groups both acquiring and divesting “in a push to recalibrate their portfolios and capitalise on current conditions”.

“With changing lending conditions, the growth of online retail, coupled with current pricing, investors are placing increased focus on opportunities that provide income growth and future value add potential,” CBRE’s Nick Willis said.

[Related reading: Northcote Shopping Centre Sells with Yield of Less than 4%]

Notable transactions during the year included Parramatta’s Entrada Shopping Centre for approximately $35 million, representing a 5.6 per cent yield, and Pittwater Place in Mona Vale on a yield of 5.1 per cent.

Chester Square Shopping Centre in Sydney’s south-west last year broke the national record for the sharpest neighborhood shopping centre yield at just 3.78 per cent.

“With continued momentum from 2017 and strong weight of capital pursuing retail investments, we anticipate continued improvement, largely for metropolitan markets, which is being driven by a lack of supply and increased investment demand for assets offering these attributes.”

Headwinds are expected for the sector in 2018, although centres focused more on food and drink are viewed as somewhat recession-proof.

CBRE senior research manager Daniel Lee said that food and beverage retailers remain more defensive against online retail.

“Larger retailers fared better than smaller retailers in 2017 with 3.8 per cent and 0.7 per cent growth respectively. Retailers such as supermarkets should be more defensive against a cyclical downturn and threat of online retailing,” he said.

RetailAustraliado not useParramattaSector
ADVERTISEMENT
TOP STORIES
Exclusive

Accor Deputy Delivers Verdict on Brisbane Games Hotel Shortfall

Phil Bartsch
6 Min
Qld Budget 2025-26 Brisbane City
Exclusive

Billions Promised, Now Deliver: Industry’s Qld Budget Verdict

Vanessa Croll
6 Min
Medium Density housing in NSW
Exclusive

NSW Budget ‘Groundbreaking’ $1bn Guarantee to Unlock Housing

Leon Della Bosca
7 Min
Exclusive

Azure’s Trent Keirnan on Playing the Long Game

Taryn Paris
5 Min
Exclusive

Private Credit Surge, Skittish Buyers Force Banks to Loosen Presale Rules

Taryn Paris
5 Min
View All >
TimePlace Manly shoptop
Construction

Time & Place Plans Second Manly Project as First Begins

Vanessa Croll
Not-for-profit BaptistCare is about to embark on one of its biggest projects to date, a 6.4ha development in Sydney’s north west with a capital investment value exceeding $2 billion.
Placemaking

BaptistCare Plans $2bn Precinct at Macquarie Park

Renee McKeown
King William Road City of Unley Corner of Mary Street and King William Road North
Planning

Rezoning Push to Unlock $300m Scheme at SA’s Unley

Leon Della Bosca
A council depot and post office site have been earmarked as the epicentre of Adelaide’s next development hotspot...
LATEST
TimePlace Manly shoptop
Construction

Time & Place Plans Second Manly Project as First Begins

Vanessa Croll
2 Min
Not-for-profit BaptistCare is about to embark on one of its biggest projects to date, a 6.4ha development in Sydney’s north west with a capital investment value exceeding $2 billion.
Placemaking

BaptistCare Plans $2bn Precinct at Macquarie Park

Renee McKeown
2 Min
King William Road City of Unley Corner of Mary Street and King William Road North
Planning

Rezoning Push to Unlock $300m Scheme at SA’s Unley

Leon Della Bosca
4 Min
Ledlin Developments Somerville Business Park
Industrial

Ledlin Plots $13m Somerville Premium Business Park

Leon Della Bosca
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/record-yields-for-nsw-neighbourhood-shopping-centres-