Sydney Retail Figures Q2 2025

Key Points: 

• New South Wales GSP increased 1.2% in 2023-24, following a rise of 4.2% in the previous year.
• NSW retail turnover edged up 0.1% m-o-m in May, reaching a total of $11,408m.
• The launch of Sydney Metro and Parramatta Light Rail Stage 1 has boosted CBD footfall and improved retail connectivity across key city and suburban precincts. 
• Development activity remained subdued in Q2 25, with no new completions recorded. Ongoing supply constraints are expected to support further rental uplift. 
• Sydney CBD retail vacancy declined by 29 bp in H2 24 to 7.1%, supported by the rebound in office occupancy, tourism, and continued demand from global retailers.
• Over the quarter, super prime CBD rents increased by 1.5%, regional shopping centres rose 2.1%, while sub regional and neighbourhood centres remained unchanged. LFR rents increased by 0.8% q-o-q.
• Yields were broadly stable across most retail asset classes in the June quarter, aside from regional shopping centres, which saw a compression of 2 bp.