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Retail transaction volumes in Australia hit the USD 8 billion mark for the first time

April 2016

Australia’s retail investment market hit a new high in 2015 – reaching USD 8.4 billion of investment activity, representing a fourth consecutive record year, broad-based activity across all retail sub-sectors, with sub-regional shopping centres being the standout performer.

JLL’s Australian Shopping Centre Investment Review & Outlook report shows demand for retail assets was led by offshore investors, who purchased the highest level of retail assets in Australia on record. Offshore investors are expected to lead the buying demand again in 2016.

“2015 was another record year for the retail investment market and yields reached new benchmarks for core assets. Owners were cognisant of the significant volume of primarily-offshore capital that is seeking transaction scale in highly transparent and low-volatility markets, while also taking advantage of the weaker AUD and historically low debt costs,” said JLL’s Head of Retail Investments – Australasia, Simon Rooney.

Transaction activity is expected to remain elevated in 2016 as a result of pent-up demand for assets.

The record level of offshore investment in 2015, at USD 2.4 billion, is a clear indication that Australian retail property remains attractive in a global context due to the stability of returns and transaction scale.

 

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