The slowdown in Sydney residential values through 2018 and into 2019 and subsequent decline in profitable redevelopment opportunities, (in conjunction with the low interest rate, low return environment) are providing opportunities for entrepreneurial investors to take medium to long term positions on income producing assets within a declining market in hope of future potential upside.
Investors are seeking retail investments within higher density locations around existing and proposed transport hubs with plans to create diverse mixed retail developments in these areas and provide greater consumer environments. As new residential supply subsides, on-going population growth will place further pressure on established suburban locations.
This has led to the rise of the value-add investor within the suburban retail market creating greater competition for underdeveloped assets. The cyclical changes within the development site market has seen a shift of capital flow towards investments which show future redevelopment upside.
The direction of capital is focussed towards these retail properties as high density environments are placing more importance, and consequently value, on the retail component of future mixed-use developments. Cushman & Wakefield’s analysis of mixed retail investment sales within the last 18 months demonstrates a distinct yield differential in sales which represent stronger redevelopment potential to conventional retail freehold investments.
The above is an excerpt from the Suburban Mixed Retail Market Overview 2019. Get the full data here.


Mixed Retail Investments in Suburban Sydney on the Rise
05/07/2019
Related Insights

Insights • Economy
Cushman & Wakefield Comments on H2 2023 Government Land Sales (GLS) Programme
The Government today announced the Government Land Sales (GLS) Programme for the second half of 2023, which comprises eight Confirmed List sites and nine Reserve List sites.
Xian Yang Wong • 21/06/2023

Insights
Innovative Turnkey Retail Creates A Win-Win Solution
Retail sales remain below pre-pandemic levels (Chart I), as footfall in malls continues to be hit by an ongoing capacity limits, border controls and work from home arrangements. From dine-in bans to the cap on group sizes, restrictions in the F&B sector have dealt an even greater blow to the retail industry as F&B establishments are integral to draw traffic to any retail sites.