Michael Bate presentation
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The document summarizes trends in the Australian retail sector from 2008-2013. Retail sales and consumer sentiment increased steadily from the global financial crisis. Major developments included $7 billion in new construction projects, growing foreign investment reaching $3 billion by 2012, and stable commercial real estate yields entering 2013 with record low interest rates supporting consumer spending. The key takeaways were continued confidence in the Australian retail market from developers, retailers improving strategies as international retailers expanded, and a stable economy with population growth.
Michael Bate presentation
- 1. THE NORMALISATION OF RETAIL Michael Bate Head of Retail Colliers International
- 2. CONSUMER SENTIMENT 1990 90 1995 95 2000 00 2005 05 201010 2013 Retail Sales (LHS) Consumer Sentiment (RHS)
- 3. THE RETAIL ENVIRONMENT Retailer Retailer Xmas/ Online International Domestic reporting failures January Opportunity retailers retailers Surprised on The worst trade not a threat. Australia is an Expanding the upside. is over? Little impact attractive offshore. from interest proposition. rate cuts.
- 4. DEVELOPMENT ACTIVITY $150M
- 5. DEVELOPMENT ACTIVITY $1.3B
- 6. DEVELOPMENT ACTIVITY $650.0M
- 7. DEVELOPMENT ACTIVITY $200.0M
- 8. DEVELOPMENT ACTIVITY $1.95B
- 9. DEVELOPMENT ACTIVITY $2.0B
- 10. DEVELOPMENT ACTIVITY $2.0B
- 11. DEVELOPMENT ACTIVITY $ 7 +billion
- 13. AUSTRALIAN RETAIL SECTOR INCOME YIELDS Super & Major Regional 15 1996 to 1998 Regional 14 Sub-Regional 13 Neighbourhood 10 Yr Bonds 2008 to 2012 12 11 10 9 % p.a. 8 7 6 5 4 3 2 Dec-87 Dec-88 Dec-89 Dec-90 Dec-91 Dec-92 Dec-93 Dec-94 Dec-95 Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Source: Colliers International Research/Deloitte Access Economics/IPD
- 14. Neighbourhood 8.2% DEC 12
- 15. Sub Regional 7.8% DEC 12
- 16. Regional 7.0% DEC 12
- 17. FOREIGN INVESTMENT RETAIL DATA $1,458b $698m $458m $132m $19m 2008 2009 2010 2011 2012
- 18. FOREIGN INVESTMENT RETAIL DATA $3BILLION worth of offshore capital looking to invest in Australian retail in 2013
- 19. Investment Consumer Stable yields Confidence entering 2013 Lowering interest rates 10 year bonds at an Consumer spend all-time low THE KEY Foreign investment at an all-time high TAKEOUTS Developer Retailer Confidence in the market Improved strategies Affordable capital Consumer spend Stable economy with International retailers a continued pop grown
- 20. THE NORMALISATION OF RETAIL