Retail Property Facing Challenges

Retail challenges.

Having weathered the recent rate increases, consumer confidence seems to have risen just a measly 0.3% during November — according to the latest Westpac/Melbourne Institute consumer sentiment index.

Households still appear to prefer paying down debt, rather than spending — with Australia’s saving level hovering around a record 10.5% of its disposable income.

However, shopkeepers are vainly hoping for a last-minute surge, in this final week leading up to Christmas.

Looking ahead, consumer spending should improve as the current patchy growth spreads through every state. And people start to recognise the underlying strength of the Australian economy.

Even so, retailers will still confront the threat of online shopping; and experience only modest growth in sales over the next 3 to 4 years.

Bottom line: You ought be very wary of acquiring Retail property, until a clear upward trend emerges.

And do enjoy your Christmas break.


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