Rising consumer confidence, lower interest rates, and solid wage growth are driving retail spending and competition for prime assets. With limited supply and strong income returns, investor demand for retail continues to strengthen.
Q2 Highlights:
- Investment volumes ($10m+) hit c.$2.9bn, up nearly 25% on the same time last year.
- Transactions above $100+ made up roughly 70% of deal activity.
- Institutional capital drove 63% of deal activity, up from 55% a year earlier.
- Sub-Regional activity surged to a decade high; Neighbourhood held steady; Large Format softened.
- Retail led sector returns in the year to Q2 (+7.8%), powered by resilient income growth (+6.1%).
- Further rate cuts are set to boost investor appetite, positioning the market for a stronger 2H 2025.