Australian shopping centres have successfully embraced the 'everyday' retail goods and services, including department stores, supermarkets, entertainment, leisure, fashion and food. By bringing a wider range of retail goods and services under the one roof, Australian shopping malls have become an integral part of their communities.
Investment into shopping malls
Many of these shopping centres are managed by large, diversified property groups and successfully attract investment because of capital stability and the reliable income these properties provide. Shopping malls account for 38% of Australia's retail space and more than a third of retail outlets.
In this blog post, we will explore 5 reasons why you should invest in a shopping centre in Australia.
Investing in Retail shopping mall in Australia
- In 2016, the performance of various shopping centres across Australia and their retailers grew year on year. In the supermarket sector, for example, Coles reported growth of 4.1% on the FY16, while KMart reported comparable sales growth of 10.5% in FY16.
- The growth of global fast fashion brands continued in 2016, driving more take-up of space, particularly in regional shopping centres undergoing re-developments. The expansion of these groups has become more widespread than initially anticipated.
- The top quartile (20 centres) of regional shopping centres recorded sales growth of 10.7% between 2015 and 2016. Australia still looks very attractive to offshore institutional investors as it is considered to be a low-risk destination.
- The Australian GDP growth rebounded in Q4 2016 to 2.4% pa, driven by household consumption and private investment. Household consumption grew 2.6% pa, in line with the 10 year average of 2.7%. Growth was supported by growth in the key retail categories of clothing (5.2%) and furnishings and household equipment (4.5%). The wealth effect and confidence have influences on retail spending in Australia. Rising house prices and a recovery in the sharemarket provides a positive outlook for retail spending in 2017.
- Low investment amounts via real estate crowdfunding platforms, such as CrowdfundUP, mean that investors with even modest budgets can add some more diversification to their portfolios. For as little as $1,000, accredited Investors can invest in a retail shopping centre.
A wider pool of Retail Investors
Real estate crowdfunding platforms provide alternative financing to serve a wider pool of Investors.You can crowdfund your next shopping centre development on Crowdfunding platforms such as CrowdfundUP and access a larger group of qualified investors across Australia.
CrowdfundUP often and successfully fund retail shopping centre developments and acquisitions with premium property group companies.
CrowdfundUP is an investment platform that allows people to invest in Australian real estate with as little as $1000. You can start Investing in Australian commercial real estate via our short term or long term investment opportunities. Get started investing today!
"Any advice provided on this blog is general in nature. Readers are urged to seek their own professional advice before making decisions."
Oct 13. 2017