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Australia’s retail sector has emerged from the global economic slump relatively unscathed
The global economy may have taken a battering but Australia’s retail sector has proved its resilience, with Sydney, Melbourne and Brisbane now ranked amongst the 20 most expensive retail markets in the world.
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CB Richard Ellis’ latest Global Market View ranks Sydney at number seven on the list – two spots ahead of Brisbane and five spots ahead of Melbourne. Auckland – the only other Pacific market included in the survey – ranked forty-ninth.
New York remains the most expensive retail market in the world, despite a 20 per cent decline in rental values over the past 12 months.
CBRE global research and consulting executive director Kevin Stanley said while Australia’s strong showing could be attributed in part to the strength of the Aussie dollar against the Greenback, prime CBD retail rents around the country had remained relatively stable – and even risen in some markets – over the past 12 months, in stark contrast to other centres.
Mr Stanley said the result was particularly significant given the “significant amount of trauma” that had occurred in Melbourne and Sydney as a result of redevelopment activity, which had resulted in store closures and temporary relocations.
“When these new centres in the Melbourne and Sydney CBDs are completed, there’s expected to be a boost to destination retailing and probably an increase in rents as well,” Mr Stanley said, adding that low interest rates and the federal government’s cash hand-outs had helped keep the tills ringing in Australia’s CBD retail markets over the past 12 months.
The regional director of CBRE’s retail group, Joshua Loudoun, attributed the strong Brisbane result to a similar scenario, following the displacement of retailers from the redevelopment of the Wintergarden centre in Brisbane’s CBD.
Mr Loudoun said low vacancy rates and strong retailer demand had helped most Australian capital city retail markets maintain or improve their position notwithstanding the global financial crisis.
