Australia Retail Real Estate
Market Future Outlook And Projections
Retail sector across the states of Australia are projected to increase
over the next five years (2019-2023) at a CAGR of over ~%. The market is
focused on reducing exposure to low growth assets and redeploying capital into
new acquisitions or re-development projects. The country witnessed a growth in
vacancy rate in Australia from ~% in year 2017 to ~% in the year 2018 which
excludes large format retail. Retail turnover growth is projected to be
slightly below trend in 2019 as proactive shopping centre owners have built
business plans on a lower retail spending environment which will create a
diverse tenancy mix that appeals to the primary trade area which will be
important to maintain occupancy and income levels.
How is the Australia Hotel Real
Estate Market Positioned?
The hotel space within
Australia
real estate industry was witnessed to grow in terms of total room
revenue. The hotel real estate industry of Australia showcased a five year CAGR
of ~%. Major demand driver for the hotel real estate space was tourism which
saw a record growth in terms of tourism arrivals in the year 2018. Australia’s
accommodation pipeline had a positive growth in year 2018 with the opening of
almost ~ new rooms across the ten major markets and a further ~ rooms in Sydney
and Melbourne’s sub-markets. With a strong economic backdrop and significant
investments in tourism and transport infrastructure, demand is expected to
absorb the additional supply as Australia’s appeal as a premium destination for
visitors continues to grow.
What Are The Factors Inflecting
Hotel Real Estate Sector In Australia?
Increase in Number of
International and National Tourists: In 2018, approximately ~ million
tourists visited Australia from overseas thus, showcasing a growth of ~% from
the year 2017, when ~ million tourists visited Australia from the other
countries. In 2019, this figure is projected to grow to over ~ million overseas
visitors.
Emergence of Lifestyle Hotel
Segment: The emerging hotel category refers to accommodation properties
that have a unique design and that offer their guests experiences that connect
them with the local area. Australia’s boutique and lifestyle hotel market has
expanded in the period from 2013 to 2018 with the opening and repositioning
properties and the entry of new lifestyle and soft hotel brands.
Government Initiatives towards
Tourism in Australia: Tourism ministers from the Australian and state and
territory governments had started to imply four policies under priority for the
tourism sector. The four policies related to the tourism in Australia focused
on the national strategy to grow the hotel and tourism industry.
Other Factors:
Increase in tourist expenditure;
Presence of branded hotel operators; and Tourism contribution to GDP.
Current and Future Hotel Demand
and Supply
The increased demand for rooms,
the rapid growth of domestic and international visitors, and the historically
lower levels of new supply have majorly contributed for the gap between the
demand and supply of new hotel rooms in Australia.
New hotel developments
require multiple number of planning regulations, which affect the cost and
timeframe of projects. Regulatory frameworks thus had the potential to hinder
timely and innovative hotel projects as they imposed outlandish business
limitations on investors in the major cities and capitals of Australia.
The challenges involved in
developing tourism attractions and accommodation facilities play a key role in
contributing to an undersupply of hotel capacity in Australia.
A scarcity of land in capital cities and competition from other land
uses with better business cases has contributed to high occupancy rates for
hotels, underinvestment in existing stock and substantial turn-away demand
during peak periods. Regional tourism attractions are often located in areas of
natural amenity which typically face a higher regulatory burden, potentially
lowering investor interest.
Regional Landscape Of
Australian Hotel Real Estate Market
New South Wales (Sydney): A
strong performance of Sydney’s hotel sector was experienced in year 2018 with
RevPAR increasing ~% from 2017. Major factor for positive growth in Sydney was
the strong economic backdrop and significant investments in infrastructure. The
opening of the new International Convention Centre in late 2016 had also
provided growth to the Australian hotel sector.
Sydney hotel market added around ~ rooms in the CBD in the year 2018 and
~ new rooms in the metropolitan sub markets. Occupancy levels averaged ~%in the
year 2018.
Victoria (Melbourne): Melbourne
acted as one of the active hotel investment markets in year 2018 with 4 major
hotel transactions including the Mercure Melbourne Treasury Gardens for AUD ~
million, Adina Melbourne for AUD ~ million, The Royce Hotel for AUD ~ million
and the Sheraton Melbourne for AUD ~ million which was bought by an offshore
group i.e. Qatar Air.
Queensland (Brisbane and Gold
Coast): Brisbane was one of the most active markets in terms of hotel
transactions in year 2018 with buyers strategically acquiring assets for
repositioning across the CBD as trading performance was nearing stabilization.
Australia Hotel Real Estate
Market Future Outlook And Projections
Sydney and Melbourne showcased a growth in the year 2018. It is
expected that the construction wave will witness more than ~ new rooms added in
Australia by 2025. In Perth, the property market timeline is ahead of the rest
of Australia. As the residential markets close down, hotels will provide good
cash flow to investors, attracting international and local investors to the
market. There is a trend in Australian hotel real estate sector of designer
touches, smart technology solutions and engaged, personal service.
There are a total of ~ rooms in the pipeline until 2028, from a total
of ~ projects. Capital city
accommodation will showcase high occupancies for the year ending March 2019.
Hobart, Sydney, Melbourne and Adelaide will showcase strong results of over ~%
of occupancy. This demand will significantly improve the hotel sector’s Revenue
per Available Room (RevPAR) in coming years and is expected to continue to
rise, projecting growth of ~% in 2019. It is expected that 2019 will remain
positive for the Australian hotel sector as the room nights sold to grow over
the next three years at ~% per annum, and national occupancy rates to rise ~%
by 2019. Revenue per available room is forecasted to grow by ~% over the next
three years till 2023, and average room rates are expected to increase at an
average of ~% by the year 2023.
Key Segments Covered:-
Australia Retail Real Estate Market
By Type:
Regional
Sub-Regional
Neighborhood
CBD
Large
Format Retail
Others
(Small Retail Stores and Independent Stores)
By Geography:
New South
Wales
Victoria
Queensland
Western
Australia
South
Australia
Northern
Australia
Tasmania
Australian
Capital Region
Australia Hotel Real Estate Market
By Type:
3 Star
Hotels
4 Star
Hotels
5 Star
Hotels
Others
(Less than 3 Star Hotels)
By Geography:
New South
Wales
Victoria
Queensland
Western
Australia
South
Australia
Northern
Australia
Tasmania
Australian
Capital Region
Australia Office Real Estate Market
By Type:
Grade A
Office
Grade B
Office
Premium
Office
By Geography:
New South
Wales
Victoria
Queensland
Western
Australia
South
Australia
Northern
Australia
Tasmania
Australian
Capital Region
Australia Residential Real Estate Market
By Type:
Apartments
Villas
By Geography:
New South
Wales
Victoria
Queensland
Western
Australia
South
Australia
Northern
Australia
Tasmania
Australian
Capital Region
Key Target Audience:-
Real Estate
Developers
Independent
Investors
Real Estate
Consulting Companies
Third Party
Real Estate Companies
Independent
Architects
Government
Associations and Agencies
Time Period Captured in the Report:-
Historical Period -
2013-2018
Forecast Period -
2019-2023
Companies Covered:-
Metricon
Homes Pty Ltd
Dyldam
Developments pty limited
Burbank
Group
GJ Gardner
Homes
Multiplex
Group
ABN Group
MJH Group
Stockland
Corporation Limited
Frasers
Property Australia Pty Ltd
Henley
Properties, Australia
Lendlease
group, Australia
Probuild
Constructions (Australia) Pty Ltd
CPB
Contractors
John
Holland, Australia
Key Topics Covered in the Report:-
Australia
Real Estate Market
Australia
Real Estate Market Revenue
Australia
Residential Villas Real Estate Market
Australia
Grade A Office Real Estate Market
Perth Real
Estate Market
South
Australia Real Estate Market
Victoria
Retail Real Estate Market
Total
Number of Households Australia
Number of
Migrants in Australia
Australia
Residential Real Estate Market
Australia
CBD Real Estate Market
Australia
Real Estate Industry
Sydney Real
Estate Market Size
For more information on the research report,
refer to below link:-
Related Reports:-
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Ankur Gupta, Head Marketing & Communications
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