Retail Property Activity Continues

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As the government spending and tax cuts add to consumer demand, you’ll see the Australian economy continue to grow strongly.

Retail ConstructionThe resultant surge in retail spending, in late 2006 and earlier this year, has lead to an increase in retail construction. This typically follows periods of strong sales growth — which then tends to wane, with weaker retail spending.

Apart from the residential sector, retail property is clearly the sector most affected whenever interest rates rise. So, just make sure your retail investments contain at least a 4-year lease (with built-in annual rent increases) to carry you through any retail slow-down, during 2009 and 2010.

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