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In spite of vast swathes of the country experiencing varying levels of lockdown, as well as many retail outlets closed, a very strong level of shopping centre transactions continued unabated in August. The upswing in the number of transactions, which commenced in April this year, has also seen a surge in both the value and volume of shopping centre transactions. The Data App estimate, in the three months to August, the number of transactions is over three-fold higher than a year ago, while the value of transactions, touching close to $1bn over the same period, is the highest since January 2018, thereby predating the pandemic.
The move to working from home, extenuated by the COVID 19 pandemic, could have a dramatic impact on both the number of office workers and retail spending in Australia’s CBDs.
Assuming, on average, workers spend one day a week working from home, this could result in close to one million fewer office workers making the daily commute each week, which would potentially see over $700 million dollars of lost annual retail spending across Australia’s six largest capital cities. This is according to a new study by the PAR Group, an independent property research collective.
Shopping centre transactions continued to boom in the three months to July, thereby maintaining the strength witnessed last month. Consequently, transactions are significantly higher than a year earlier, when Covid-19 had taken hold and activity was stalling. The latest estimates from The Data App show the average number of transactions in the three months to the end of July remained over twice as high as a year ago.
Shopping centre transactions reached a multi-year high in the three months to June, having slumped when the corona virus took hold around eighteen months ago. As the quarter drew to a close, with the corona virus apparently more under control and the vaccine rollout progressing, shopping centre transactions continued to strengthen. The latest estimates from The Data App show the average number of transactions in the three months to the end of June nearly three times higher than a year earlier.
Even though the number of shopping centres transacted in May was well down from the dizzy heights posted in April, they are still up on May last year. The latest estimates from The Data App show the number commercial retail property transactions in the three months to May up over 80% compared to a year earlier, as the Covid-19 induced slump in shopping centre activity has gradually waned.