The slowdown in Sydney residential values through 2018 and into 2019 and subsequent decline in profitable redevelopment opportunities, (in conjunction with the low interest rate, low return environment) are providing opportunities for entrepreneurial investors to take medium to long term positions on income producing assets within a declining market in hope of future potential upside.
Investors are seeking retail investments within higher density locations around existing and proposed transport hubs with plans to create diverse mixed retail developments in these areas and provide greater consumer environments. As new residential supply subsides, on-going population growth will place further pressure on established suburban locations.
This has led to the rise of the value-add investor within the suburban retail market creating greater competition for underdeveloped assets. The cyclical changes within the development site market has seen a shift of capital flow towards investments which show future redevelopment upside.
The direction of capital is focussed towards these retail properties as high density environments are placing more importance, and consequently value, on the retail component of future mixed-use developments. Cushman & Wakefield’s analysis of mixed retail investment sales within the last 18 months demonstrates a distinct yield differential in sales which represent stronger redevelopment potential to conventional retail freehold investments.
The above is an excerpt from the Suburban Mixed Retail Market Overview 2019. Get the full data here.
![mixed-retail-investments-in-suburban-sydney-on-the-rise](https://cw-gbl-gws-prod.azureedge.net/-/media/cw/apac/singapore/insights/blog/hero-images/mixed-retail-investments-in-suburban-sydney-on-the-rise.jpg?rev=97cd38df332247d08689c4b586b2c893)
![mixed-retail-investments-in-suburban-sydney-on-the-rise](https://cw-gbl-gws-prod.azureedge.net/-/media/cw/apac/singapore/insights/blog/hero-images/mixed-retail-investments-in-suburban-sydney-on-the-rise_mobile.jpg?rev=0248444a1ddd46b289b984508c4b2ea0)
Mixed Retail Investments in Suburban Sydney on the Rise
05/07/2019
Related Insights
Article
Cushman & Wakefield Comments for URA Flash Estimates 2Q2024
Based on URA flash estimates, Singapore private home prices continue to rise, up by 1.1% qoq in Q1 2024, despite slowing volumes.
Xian Yang Wong • 01/07/2024
![APAC Inclusive Cities Barometer](https://cw-gbl-gws-prod.azureedge.net/-/media/cw/apac/common/campaign-images/2024/inclusive-cities/apac-inclusive-cities-card.jpg?rev=db1e9058abab4f44965fe4dfe4530d61)
Insights • Sustainability / ESG
Singapore stands out as a top performer in the Inclusive Cities Barometer, renowned for its exceptional urban planning, safety, and cultural diversity.
Dominic Brown • 10/06/2024
![Data-Center-Update_APAC_web-card-1221](https://cw-gbl-gws-prod.azureedge.net/-/media/cw/apac/singapore/insights/2021/data-center-update_apac_web-card-1221.jpg?rev=5b5998337cd343cbb5dcacde426186a8)
Research
The operational capacity of Asia Pacific’s* data centre markets has surpassed the 10GW mark, with ~800MW of new supply added in H2 2023 bringing the total regional live capacity up to 10.6GW. We continue to witness a robust development pipeline with 3.9GW under construction throughout the region and 9.4GW in planning stages, which is an increase of ~900MW since our last update.
Vivek Dahiya • 15/02/2024
Related Stories
Related News
Cushman And Wakefield Private Dinner
01/01/0001 • 12:00 AM •