Chart of the day: Strata retail gears up for a comeback
Reopening of the retail sector spurred interest in strata retail spaces.
This chart from Knight Frank shows the transaction volume of strata retail spaces from the number of freehold and leasehold units showing signs of a major recovery after a fall during 2020 and 2021.
“Four years on from 2017, the nascent signs of a rebound finally appear to be underway for the strata retail market. The reopening of the retail sector with the limits of gathering size and operating hours removed spurred renewed interest in strata retail space that was largely overlooked during the onset of the pandemic,” Knight Frank observed.
Since 2021, transactions for strata retail units increased. This momentum is expected to continue in 2022. In H1 2022, a total of 126 units were sold, grossing some $290.9m in total sales value. Knight Frank observed that despite being less than the 137 units sold in H1 2021
this was still 8.8% higher than the $267.4m in total transaction value for that half-year period.
“Sales activity for strata retail space is expected to pick up in the months ahead as the retail sector is no longer held back by Safe Management Measures,” Knight Frank said.