Sydney annual retail stock at its lowest since 1989

Only 39,200sqm of new retail space was added in 2024.

No new retail space was added to stock in the Q4 according to JLL, down from 21,500 sqm in the previous quarter. Over the year, 39,200 sqm of new stock was added, the lowest level of supply JLL has recorded since 1989.

“The low supply trend continues nationally, with several developers delaying construction despite securing DA approval,” the analyst said.

Here’s more from JLL:

Quarterly transactions totalled AUD 1.28 billion across five assets, with the AUD 900 million sale of Westpoint Blacktown accounting for the majority of this amount.

LFR rents recorded the most significant year-on-year increase of 3.39%.

Outlook: Favourable economic forecasts are expected to revive the low supply experienced in 2024

An uptick in supply is forecast for 2025, albeit from very low levels in 2024.

Regional and sub-regional yields are forecast to remain stable over the next four quarters before compressing in Q1 2026.