THE retail market has been the strongest sector in the Australian property market and remains the focus of most interest, two new property profiles reveal.
Profile On Property 1993, released this month by Hooker Research, says the yield gap between office and retail property had narrowed in favour of retail - a shift it predicted would be permanent.
''Despite the slowdown in the overall economy, vacancy rates have been low in prime shopping centres and retail shopping centres are perceived to be slow risk and in limited supply,'' it says.
It predicts the retail market would stabilise in the next year following the portfolio shift into retail property by major investors: ''The next stage in the retail property cycle will be increased emphasis on the expansion and refurbishment of existing centres, a focus on financial performance and ensuring a market advantage against competitive centres.'' Jones Lang Wootton (JLW) Research's Australia and New Zealand Property Digest, also released this month, said levels of investment in the retail market were very high, especially compared with the office market, which remained weak, and the lower end of the industrial market which showed signs of improvement in the first quarter of 1993.
''Investment remains strong in the retail sector with over A$800 million (HK$4.24 billion) traded, the largest quarterly sales volume since at least 1988.
''Most sales and leasing activity occurred outside the central business district markets with regional centre rentals and yields continuing to improve,'' the report says.