Australia Retail Figures Q3 2025

Key Points:

• Household spending rose 0.1% in August, following a rise of 0.4% in July and 0.5% in June. Household spending has increased 10 times over the past 11 months bolstered by improving consumer confidence.
• The Westpac–Melbourne Institute Consumer Sentiment Index declined to 95.4 in September from 98.5 in August.
• Net face rents grew across all sectors in Q3 except secondary CBD locations. Regional centre assets recorded the highest growth of 1.3% q-o-q.
• Shopping centre and large format yields continued to compress over Q3 with regional centres compressing by 9 bp and neighbourhood and large format centres compressing by 6 bp q-o-q. Interest rate cuts have put downwards pressure on yields, while the return of larger investors have seen the market become more competitive, driving down yields. 
• In Q3 2025, there were 38 retail transactions (greater than $5 million) totaling c.$2.093 billion.  Transaction volumes for the first three quarters of the year were the highest since 2016 reflecting continued strong demand for retail assets.