The state’s retail market will remain the nation’s strongest over the next 12 months, despite consumer spending growth expected to ease as expansion in the resources industry tails off, new research from CBRE says.
CBRE's ‘Australian Retail Marketview’ report said retail turnover growth rose by 8.58 per cent in the 12 months to March 31 in Western Australia, with Queensland recording the next-highest level of growth at 5 per cent.
CBRE senior research manager Tammy Smith said she expected WA to continue to lead the nation in retail growth over the medium to long term, driven by rapid population growth.
“Previously, very strong spending growth was driven by the state’s thriving resources industry, which boosted income growth relative to other markets,” she said.
“While we are seeing the rate of growth slow in the short term, the longer-term fundamentals remain strong.
“This, coupled with the state’s high levels of population growth, is helping to create an attractive environment for investors looking to purchase retail assets.”
The research showed retail investments for the year to December 2012 were the third highest nationally, at $669.65 million.
Investment during the first quarter of 2013 has topped $500 million, CBRE director of institutional investment properties Andrew Woodley-Paige said.
“Investors are increasingly looking towards expanding their retail investment portfolios to include sub-regional centres, with the current low interest rate environment helping to further drive this trend,” he said.
