Powered by MOMENTUM MEDIA
realestatebusiness logo
Subscribe to our newsletter SIGN UP

Retail property market to improve in 2013: Colliers

11 January 2013 Simon Parker

Staff Reporter

The retail property market is expected to strengthen throughout 2013, according to Colliers International.

Michael Bate, Colliers International's head of retail, said the retail market had traditionally outperformed all other commercial property sectors over the past two decades, but 2012 had been a “defining year”, with the sector undergoing significant structural change.

“We have seen weaker retail sales driven by a shift in the mix of spending, retail price deflation and pressure on retailer margins, challenges posed by the strong Australian dollar and the continued evolution of online retailing in Australia,” he said.

Mr Bate said the retail sector in 2013 would be influenced by the impact of interest rate cuts on household disposable income, the level and intensity of price discounting by retailers and the management of operating costs by both property owners and retailers.

“Retail spending remains below long-term averages in Australia, but the volatility experienced over the past six months has now moderated,” he said.

“Improved sales growth has been reported and this is clearly welcome, but it is still too early to predict a turnaround in consumer confidence.

“However, moving into 2013 we expect a modest improvement in retail spending with household incomes to be supported by rate cuts, cushioning the impact of slower wages growth and higher taxes.”

Retail property market to improve in 2013: Colliers
lawyersweekly logo
FROM THE WEB
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast

Network or independent?

Independent
Network, the bigger the better
Network, but midsized
Niche group, small and agile
Do you have an industry update?
REAL ESTATE BUSINESS NEWSLETTER
Ensure you never miss an issue of the Real Estate Business Bulletin. Enter your email to receive the latest real estate advice and tools to help you sell.