This was Sydney’s largest retail property sale in Q1
It was a deal worth AUD158m with a passing yield of 5.75%.
In addition to sustained demand from luxury fashion brands demonstrated by the new standalone Ralph Lauren store, JLL says Sydney’s CBD is experiencing significant leasing demand from established high-end food and beverage groups.
Here’s more from JLL:
Sydney recorded an uptick in supply additions from Q4 2022. In comparison to the 17,190 sqm of project completions in Q4 2022, the completion of the Box Hill Shopping centre project added 21,642 sqm of new retail space to stock.
The CBD and regional sub-sector recorded slight rental declines while the other sub-sectors recorded rental increases of 1%. Although the CBD recorded its 12th consecutive rental decline, the severity of the q-o-q declines have lessened.
As per historical precedent, Q1 of 2023 was subdued in comparison to Q4 of the preceding year. In comparison to the AUD 277.5 million of assets transacted over Q4 2022, Q1 2023 recorded AUD 174.3 million transacted across three assets. The largest sale was Stanhope Gardens which was sold by Mirvac to Revelop for AUD 158 million with a passing yield of 5.75%.