Sydney Retail Figures Q3 2025

Key Points:

• NSW household spending decreased 0.2% m-o-m in August, reaching a total of c. $24.2b.
• The launch of Sydney Metro and Parramatta Light Rail Stage 1 has lifted CBD foot traffic and strengthened retail connectivity across key city and suburban precincts in NSW. 
• Development activity remained subdued in Q3 25, with no new completions recorded. Ongoing supply constraints are expected to support further rental uplift.
• Sydney CBD retail vacancy declined by 210 bp in H1 25 to 5.0%, supported by the removal of a notable group of stores at MetCentre, a portion of which were vacant, from the total stock count due to their planned conversion into podium space. 
• Over the quarter, super prime CBD rents increased by 2.5%, regional shopping centres rose 1.4%, while sub-regional centres, neighbourhood centres and LFR’s rose by 1.3%, 1.0% and 1.2%, respectively.
• Yields were stable across most retail asset classes in Q3 25, aside from regional and neighbourhood shopping centres, which saw a compression of 5 bp and 6 bp respectively.