Australian Retail Market Dynamics Q2 2024

Retail turnover growth (year-on-year) continues to trend downwards from a peak growth rate of 11.5%, reaching 1.6% in May 2024. While the cash rate outlook remains volatile, the current restrictive policy stance is slowing the pace of discretionary spending. Nevertheless, vacancy rates remain low and the supply outlook is very muted. Options for tenants are becoming more limited, driving rental growth. Investors are returning to the retail sector given the improving value proposition.