Retail investment for Q1 2017 totals $1.1b: Cushman & Wakefield

Retail investment for Q1 2017 totalled $1.1bn, up 23 percent on the same period last year according to Cushman & Wakefiled's Retail Investment Snapshot for the quarter.

According to the report Queensland accounted for 43 percent ($457m) of the national investment volume. 

"In contrast, New South Wales and Victoria recorded $262m and $221m, both below respective longer- run averages, as limited available stock was on the market," the report said.

"Foreign investment rebounded strongly in Q1 2017 to $533m, up from $297m in Q4 2016.

"Foreign investors were active across different centre types and sizes. This was highlighted by German- based Deka Immobilien’s purchase of the Canberra Outlet Centre for $135.5m, with a further $160m committed to a Redbank Plains sub regional centre by Rockworth Capital Partners, and $87m into two neighbourhood centres.

"With a lack of activity in larger core retail assets, where yields are tighter, average transaction yields remained stable for the quarter at 6.3 percent.

"Many of the trends evident in 2016, such as retail property’s relative value proposition and competition to secure assets, remain in place into 2017.

"However, we expect more stock to come to market as established owners sell non-core assets to recycle capital into existing assets. Equally, active traders are likely to dispose of assets to seek new opportunities.

"Not only will this bring increased liquidity, and support overall transaction volumes, but also provide opportunities for new market entrants all along the risk curve. 

"In December 2016, Moving Annual Turnover (MAT) grew 3.4 percent, though continued the downward trend from a peak of 5.7 percent in late 2014.

"Retail turnover growth has been limited by weak employment and income growth though consumer sentiment has bounced back to 99.6 reflecting a more positive attitude towards national economic growth."