Canberra retail market appears positive: HTW Retail

Canberra retail market appears positive: HTW Retail
Staff reporterDecember 7, 2020

The Canberra retail market has continued to display stable sales and leasing activity throughout 2019 with early indications of market strengthening taking place, underpinned by the recent interest rate reduction by the Reserve Bank, low unemployment, vacancy levels below the ten year average and continued population growth, according to the latest retail report from Herron Todd White.

The property valuation firm found retail sale statistics issued in August by the ABS indicated a growth rate of 1.9 per cent (above the national average) in seasonally adjusted terms for the nation’s capital.

It should be noted that while many aspects of the retail market appear positive, a continued divergence between new and old offerings has led to an increased disparity in both demand and rental results.

Non-centrally located and dated stock, often in older local shopping precincts, has seen a spike in vacancies and a softening of rental expectations.

Increases to municipal and council rates continue to be a major concern in the Canberra property sector with these increases often outweighing CPI rental increases.

HTW valuers said, "the market has responded, with local agents indicating that more net leases and increases to recoverable outgoings are being negotiated."

"The outlook for the Canberra retail market is for slow to medium take-up levels to continue over the next 12 months, with a need for incentives to continue," they concluded.

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