New Markets and Big Data Drive Retail Property

Changing market demographics and big data were the key points of discussion for the Retail Outlook event as personalised experiences change the nature of retail.

Front of mind for the forum was the changing market demographics in Australia where increasing tourism from Hong Kong and China is promoting retail growth and investment.

“We are experiencing a globalised market where tourists from China, Hong Kong and other parts of the world are visiting Australia and spending money in retail which is boosting the retail property industry,” Property Council NSW Executive Director Jane Fitzgerald said.

“Data shows that in 2016, there were 28,0 visitors per week from mainland China and Hong Kong gracing our shores which was up 19 per cent on the previous year and these tourists spend an estimated $8000 per person of which $20 is spent on retail.”

The expectation is that this market will grow in 2017 and boost retail property promoting further investment and local jobs.

In 2017, the total retail spend from mainland China and Hong Kong tourism is expected to be $4.255mill which is an encouraging sign for retail property. With Australia’s annual retail spend approximately 300 billion dollars, the retail spend from the Chinese and Hong Kong tourism makes up about 1.42 % of total retail spend.

Data shows that tourists from China spend a third more per person than counterparts from the US or Britain so it is market that the retail property sector is keen to cater for.

The growth in new markets and the use of new technology and big data means people are getting a custom experience when they visit a retail centre.

“The ANZ/Property Council Confidence Survey shows capital growth in retail property is expected to grow in every state in Australia in 2017 and construction expectation is strong,” Ms Fitzgerald said.

“Total retail growth is projected to be a little over 4% (including CPI). This is down on previous years – as the longer-term average is between 5-6%, it’s important that retail property continues to promote growth and investment.

“Around one in four people receive their wage form the property industry means growth and evolution in sectors such as retail is crucial to Australia’s future jobs.”