Our Recent Research
Although Sydney and Perth are separated by over 3,000 kilometres and have undertaken vastly different pandemic policy setting, there are behavioural changes which have become common to both cities. An analysis of commuting patterns, as well as commercial and residential property markers, illustrates the flow-on effects of increased working from home; a practice which has become more prevalent following the pandemic.
As Australia emerges from the COVID 19 pandemic, there is growing evidence of the behavioural changes which have been made in the way people live, work and shop; all of which is likely to have long term implications for our major cities.
Even though last remnants of the restrictions have extensively been lifted, some significant difference in Post COVID Perth remain. The City has changed.
An analysis of commuting patterns, as well as commercial and residential property markers, illustrates the flow-on effects of increased working from home; a practice which has become more prevalent following the pandemic.
Whilst the number of shopping centre transactions edged higher in May, the trend remains a slowing trajectory. Also, in the three months to May, at a shade over 5%, cap rates hit a new cyclical low. The Data App estimate, in the three months to May, compared to a year earlier, the number, volume (sqm) and value of shopping centre transactions all moderated. It is increasingly apparent, after the surge in transactions last year, totalling $13.6bn in value, transactional activity is returning closer to historical levels.
Now that Australia has emerged from the COVID 19 pandemic, there is growing evidence of the behavioural changes Sydneysiders have made in the way they live, work and shop; all of which is likely to have long term impacts on the city.
The PAR Group’s latest study examined changes to commuting patterns and commercial property occupancy and yields, e-commerce spending, and residential transactions from pre-pandemic levels, to identify the impact, so far, of the COVID 19 pandemic on the way Sydney residents live, work and shop.
Maintaining the trend, which commenced at the start of the year, shopping centre transactions continued to slow in April. In addition, commercial retail cap rates, in the three months to April, declined further, hitting a cyclical low in the process. The Data App estimate, whether compared to the previous three months or a year earlier, the number, volume (sqm) and value of shopping centre transactions all moderated. This reflected the combination of a surge in transactional activity through the course of last year and the current easing. Increasingly, it seems, the boom in shopping centre transactions, which was a dominant feature through the course of last year, has now passed.
Shopping centre transactions have moderated. Even though transactions are higher than a year earlier, the first quarter of this year has witnessed a distinct slowing in activity. Compared to the first quarter of last year, The Data App estimate, all the transactional measures are higher, while cap rates have declined. However, it was around April last year when shopping centre transactions picked up dramatically; a trend which continued through to the end of the year. Clearly, some of the slowing in the market is seasonal, but there are growing indications the boom which took place last year has passed.