Property yields below average

Retail property yields have fallen below historic averages, Westpac argues in a review of the outlook for Australian property market through to 2006. Westpac’s research shows that property yields on neighbourhood shopping centres and sub-regional shopping centres are well below 10-year averages. However, regional shopping centres or CBD retail centre yields remain at the 10-year average. “These figures suggest that the market now accepts lower yields for retail property investment than over the past decade,” Westpac property markets director Frank Allen said. In some neighbourhood Sydney shopping centres, yields have fallen as low as 6%, compared to 8% recorded several years ago.