The Retail Wrap
Q2 2023
Introduction We hope this report serves its purpose as being a concise snapshot of every* transaction within the below categories in QLD, which helps you stay up to date with potential trends and significant sales.
Suburban Shopping Centres
Large Format Retail
Healthcare
Childcare
Fast Food
Service Stations
“Despite the increased cash rate from 0.10 to now 4.10, we are genuinely surprised at how resilient the market has been. Although there has been a softening of yields across the board, this has not been a like for like correlation with the cash rate. In fact, with the 400 basis point increase, yields have notably only softened around 75 to 100 basis points. With the low volume of stock levels and unstable cash rate environment it has been increasingly hard to predict property values. Auctions are still proving to be the best method for the sale of retail property, with the demand still far outweighing the supply.”
Michael Feltoe Joint Managing Director RWC Retail mfeltoe@raywhite.com 0447 714 899
“With the volatility of the cash rate environment, there is a clear flight to quality in what properties are transacting. Anything that is relatively new, in a metro location with a long lease is still being highly sought after. Comparitively, anything in the regions with multiple tenants and/or vacancies is becoming harder to bridge the gap between sellers and buyers. With the construction environment harder than ever (prices and a lack of tradesmen/consultants), we anticipate there will be a shortage of brand-new long leased investments in approximately 1-2 years, which will inevitably make that premium investment stock harder and more expensive to come by.”
Lachlan O’Keeffe Joint Managing Director RWC Retail lokeeffe@raywhite.com 0413 464 137
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