Institutions Dominate Shopping Centre Sales
Agency Knight Frank says the value of retail assets sold last financial year totalled $952 million, 20 per cent less than in 2005-06, when $1.18 billion in retail property changed hands.
The agency counts all retail sales of greater than $5 million, and its statistics include the recent Myer sale, which makes up about half the total.
"Rising investor demand has seen retail capital values increase by 10 per cent to 25 per cent over the past 12 months," said Knight Frank director Clinton Baxter. "Yields also dropped by 0.25 percentage points to 0.5 per cent over the year."
As in the office market, a lack of property available for purchase has driven the price rises more so than retail rents, which remained relatively unchanged.
"These assets will continue to be highly sought after but will remain tightly held, particularly as yields maintain their low rate," said Mr Baxter.
