POWERED BY MOMENTUM MEDIA
Retail property investors should remain alert
Investors and self-managed super funds (SMSFs) with exposure to the retail property market will need to remain vigilant as the sector is expected to go through a significant change, according to specialist commercial property lender, Thinktank.
Thinktank’s analyst, Per Amundsen, warned that despite retail sales growth in November by 0.4 per cent, annual growth of 2.8 per cent was down from 3.6 per cent in October.
South Australia saw flat sales across the sector in November but this was not the case in Western Australia, which grew 0.6 per cent, while Victoria and New South Wales were up small 0.1 per cent and a strong 0.8 per cent, respectively.
Following this, Queensland experienced 0.4 per cent seasonally adjusted growth.
Investors and SMSFs also had to factor in the fact that the performance varied for the differing retail sectors.
Another indicator showing the potential for volatility of this sector was the Westpac-MI Index of Consumer Sentiment staying in optimistic territory, which rose slightly in December (to 104.4) but the fell again by 4.7 per cent in January to 99.6, just below the “pessimism level”.
“The ongoing weakness of Department Stores and DDS remains the major news for the sector and the outcomes of negotiations with major landlords will be followed closely as the expected downsizing continues,” Amundsen said.
“Retail asset manager Vicinity recently devalued 48 retail centres by a total of $205 million, 26 of which were sub-regionals.”
According to him, both Sydney and Melbourne were approaching the peak of market, with ultra-low yields of four per cent which further confused investors and SMSFs, while Brisbane showed comparable yields of six per cent to seven per cent for sub-regional and neighbourhood centres were also described as being at the peak of the market.
At the same time, Adelaide and Perth remained at the bottom of the market with steady/increasing vacancies and declining rents.
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.57 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
32.09 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
27.42 3 y p.a(%)
