Who is buying Australia’s retail space?

A major jump in sales of retail space valued between $50 million and $100 million underpins a successful year for the sector, according to a Savills Australia report.

The agency sold $5.3 billion worth of retail properties in the year to the end of June, with those in the $50 million-$100 million category totalling about $1.5 billion more than twice as much as the 10-year average.

Along with Savills tally of almost $6 billion in the previous year, this years sales consolidate the national markets position towards pre-GFC levels.

The retail sector always faces cyclical and structural issues. Some cyclical issues arestarting to move in its favour, the Insight Australian Retail Market report says.

In the year to the end of June, institutions were the most active, snapping up 59% of retail holdings on Savills books.

Institutions were the most active, snapping up 59%of retail holdings on Savills books.

Read more: Who owns Australias shopping centres?

Institutional investors have re-entered the market with freestanding assets and shopping centres high on their list, the report says.

Furthermore, local conditions have caught the attention of international investors, as good quality; tightly-held assets have been available.

But the report saysreturns from the retail sector are likely to be constrained for the foreseeable future.

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Who is buying Australia's retail space?