Retail transaction volumes in Australia hit the $8 billion mark for the first time
Retail investment hit $8.4 billion in 2015 across all retail sub-sectors, according to JLL's Australian Shopping Centre Investment Review & Outlook with sub-regional shopping centres being the standout market.
Offshore investors purchased the highest level of retail assets in Australia on record and are expected to lead the buying demand again in 2016, according to JLL’s head of retail investments Australasia, Simon Rooney, who added the record level of offshore investment in 2015 at $2.4 billion is a clear indication that Australian retail property remains attractive in a global context due to the stability of returns and transaction scale.
“2015 was another record year for the retail investment market and yields reached new benchmarks for core assets. Owners were cognisant of the significant volume of primarily-offshore capital that is seeking transaction scale in highly transparent and low-volatility markets, while also taking advantage of the weaker AUD and historically low debt costs," he said.
“We expect transaction activity to remain elevated in 2016 as a result of pent-up demand for assets, primarily from passive sources of capital, and vendors that are motivated to sell non-core assets and mature, stable assets that have limited opportunity to add value.
“The record level of offshore investment in 2015 at $2.4 billion is a clear indication that Australian retail property remains attractive in a global context due to the stability of returns and transaction scale."
