Sydney retail supply pipeline likely to remain soft

Only 16,700sqm of new retail space was added in Q1.

According to JLL, Oran Park Podium’s extension project reached completion, introducing 16,700 sqm of new retail space to Sydney’s retail market. Warrawong Plaza’s and Plumpton Marketplace’s refurbishment projects have been completed.  

Quarterly completions were 45% below the ten-year quarterly average of 24,100 sqm, the analyst said.

Here’s more from JLL:

Yields softened in the CBD and neighbourhood sub-sectors by 13 bps. Six assets were transacted, totalling AUD 243.8 million.

The supply pipeline is likely to remain soft as labour shortages and debt costs impact project feasibility.

Discretionary spending likely to remain subdued as the RBA’s cash rate increases continue flowing through the economy.

Note: Sydney Retail refers to Sydney's overall retail market.