The strong residential property market has been identified as a leading driver behind the improving retail sector, which economists claim is a sign of further economic improvement.
According to the CBRE Q4 Australia Retail Market View, the pace of retail sales improved significantly in the final quarter of the year, with retail turnover lifting by 4.7 per cent in the year to November 2013.
CBRE senior research manager Claire Cupitt said the large format sector was closely aligned with residential market activity.
“Dwelling starts rose 24 per cent in the year to November 2013, underpinning consumer demand for household goods associated with new homes and alternations/additions,” Ms Cupitt said.
“This improved environment for large format retailers is expected to support rental growth in the market over 2014, which will be largely welcomed following a long period of lacklustre growth.”
Last month, senior economist at AMP Capital Shane Oliver said the improving retail market was a leading indicator of a strong economy.
“Improving retail figures reflect rising sentiment and confidence within consumers. With the residential property market improving, homeowners are needing to furnish their purchases and it has a flow-on effect to the rest of the economy,” she said.