Sydney retail stock to increase by 40,700sqm by year-end

This will be from nine new developments.

According to a JLL report, no new retail completions were recorded in Sydney in Q2 2024; this follows the addition of 16,700 sqm to the market in Q1 2024.

New retail stock of 40,700 sqm across nine developments is expected by year-end. Most of the new stock (44%) is concentrated in the neighbourhood sub-sector.

Here’s more from JLL:

The mismatch in landlord-tenant rent expectations continue to limit rent growth.

Month-on-month demand in New South Wales in July 2024 (-0.1%) was below the national average (+0.6%).

Quarterly investment volumes totalled AUD 731.6 million in Q2. All sub-sector yields are stable from the previous quarter. Stockland divested Stockland Glendale to IP Generation for AUD 315 million, the largest transaction in H1 2024.

Outlook: Project delays expected to continue affecting the supply pipeline

Labour shortages and construction costs are expected to increase project delays and limit completions.

Retail spending is also expected to further moderate as the volatile cash rate outlook fosters poor consumer sentiment.