The 'growth recession' hitting retail property - this data reveals a troubling long-term prognosis
The 'growth recession' hitting retail property - this data reveals a troubling long-term prognosis. For over five quarters Australia has registered annual growth at less than 1%, which is disturbingly news considering Australia's population growth stands at 1.8%. It's almost like a recession on an economic growth per capita basis and that is why things are tough for retail and are likely to remain tough. While rate cuts have prompted some improvement in sales, this streak won't continue. Australians just aren't interested in borrowing - they're keeping 24 months ahead of mortgage repayments and getting better at saving. Looking to the future, there's one warning signal investors should pay close attention to - because it typically correlates with a 2% drag on retail sales, closely followed by falling rents and weak property yields. What should we look out for? Find out more from REIT Portfolio Manager Julia Forrest (VIEW LINK)
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