LJH Commercial

010 LJ HOOKER COMMERCIAL MACARTHUR The complexity of Australia’s market history growth Australia’s economy has changed dramatically in a very short period of time. It wasn’t so long ago that our industrial corridors were filled with car manufacturers and clothing factories. One of the largest shifting sectors that has faced the most change is Australia’s industrial sector. Local manufacturers who supply to the global market have struggled to compete with cheaper materials and lower labour costs offered overseas. As a result, many industrial factories closed down or relocated operations to regions such as South-East and Central Asia. This shift was equally matched by consumer behaviour. Australians are now buying more electronic goods, toys, whitegoods, clothes and other items online than ever before. Online spending in Australia is estimated to have increased from 3.3% of all retail sales in September 2015 to 6.3% in September 2019. While this might not sound like much, it reflects a 212% increase in dollar terms to almost $1.7 billion. This is excluding expenditure at cafes and restaurants, as online spending currently takes up a higher proportion of retail expenditure. With these trends emerging, it’s unsurprising that Australia’s industrial precincts have undergone massive transformation. Manufacturers have downsized to smaller premises, with their vacated factories repurposed for storage. Transport and logistics specialists, who are essential to the 'last mile' of modern-day supply chains, have now moved in. The changes in Sydney’s commercial property market have been replicated in other markets across metropolitan markets across Australia, as well as several regional marketplaces. Emerging trends can provide positive and negative impacts for marketplaces and the subsequent worth of an investment. It’s important that investors keep up-to-date with opportunities and challenges that relate directly to their region and their asset class, so their investment performs at its best.