Australia Retail Figures Q2 2025

Key Points: 

• In May, retail turnover experienced an increase of 0.2% m-o-m and 3.3% y-o-y seasonally adjusted driven by non-food spending. Clothing, footwear and personal accessory retailing increased by 2.9%, and department stores rose by 2.6%, both recovering from significant declines in April due to delayed winter purchases after a warmer than usual autumn.
• The Consumer Sentiment Index (CSI) rose 0.5% in June, reaching 92.6 from 92.1 in May. Rate cuts and easing inflation are lifting buyer sentiment, but weak growth and global trade tensions remain a drag.
• Net face rents grew across all sectors in Q2 except prime CBD locations. Prime large format assets recorded the highest growth of 1.3% q-o-q.
• Shopping centre and large format yields continued to compress over Q2 with neighbourhood and sub regional centres compressing by 4 bp q-o-q while large format centres saw compression of 2 bp q-o-q. Further interest rate cuts in 2025 is putting downwards pressure on yields, especially in smaller assets popular with private investors.
• In Q2 2025, there were 22 retail transactions (greater than $5 million) totaling c.$2.346 billion. Retail transaction volumes in Q2 were 39.4% greater than Q2 2024.