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• Australian household spending exhibited mixed trends reflecting the cost-of-living crisis with consumers continuing to focus their spending on non-discretionary purchases. • Non-discretionary spending has generally outperformed consumer spending on discretionary items now since mid-2023. • According to ABS data, overall household spending grew by 2.9% over the year to January 2025 driven by Australians spending 8.5% more on doctor and hospital visits. In contrast, spending on alcohol and tobacco contracted over the year, declining by 12.2%. • Potentially indicating growing consumer confidence, solid growth was observed in dining out and transport spending (driven by air and sea transport, as households booked in their travel plans for the year ahead). • The ABS data also revealed that household spending on services was 5.3% higher over the year, while goods spending was only up 0.9%. • Household spending over the year grew in all states and territories. The highest percentage rises were seen in Western Australia with growth of 7.1% recorded and South Australia up 3.8%, while Victoria 1.4% had the smallest rise. Looking for expert guidance or tailored real estate solutions to elevate your business? We specialise in delivering results that drive success. Let us help you achieve your goals with strategic insights and personalised support. Visit our website to learn more and get in touch us at www.bwpa.com.au   BWP Advisors Richard Jenkins #bwpadvisors #theweeklylens #strategicconsulting #realestate #property #cre #commercialproperty #commercialrealestate #propertyadvisory #pavilionpartners

• While the total level of Australian company profits fell over 2024, declining by 6.8%; non-mining company profits have never been higher (excluding the pandemic spike). • Profits in the Finance sector led all other industries, increasing by almost 30% over the past year followed by the Arts and Utilities sectors which both grew by more than 10% in 2024. • In contrast, profits declined the most in the Mining sector, falling by 15% with contractions also recorded in the Construction and Retail sectors over 2024. • With the Australian economy largely stalling outside of the public sector, these company profit levels may suggest a promising outlook, as reinforced by the recent GDP result which revealed that Australia's economy grew by 0.6% in the December quarter, and 1.3% through 2024. • Australia’s economy has now expanded at the fastest pace in two years in the December quarter, boosted by an improvement in household spending and stronger exports. A further encouraging sign is that GDP per head of population is no longer shrinking, ending a 21-month per capita recession as GDP, albeit growing by a mere 0.1%. Looking for expert guidance or tailored real estate solutions to elevate your business? We specialise in delivering results that drive success. Let us help you achieve your goals with strategic insights and personalised support. Visit our website to learn more and get in touch us at www.bwpa.com.au BWP Advisors Richard Jenkins #bwpadvisors #theweeklylens #strategicconsulting #realestate #property #cre #commercialproperty #commercialrealestate #propertyadvisory #pavilionpartners

IN THE NEWS I BWP Advisors Founder Richard Jenkins discusses the effect of eco-conscious consumers on Melbourne's prime retail strips with Hannah Kennelly from The Age Nine. With an increasing shift toward minimalism, the number of Op shops, thrift stores and vintage clothing retailers operating across the strips has increased significantly in recent years. Melbourne suburban retail strip vacancies have declined to their lowest level in seven years. https://lnkd.in/gKMSTSjw With our extensive real estate investment experience and our comprehensive real estate data, BWP Advisors research provides our clients insights and projections on the Australian real estate market. Visit our website to learn more and get in touch us at www.bwpa.com.au BWP Advisors Richard Jenkins Ginnane Associates Pavilion Partners #bwpadvisors #strategicconsulting #realestate #property #cre #commercialproperty #commercialrealestate #retail #propertyadvisory #pavilionpartners

• Australia's unemployment rate ticked higher in January even though job creation outpaced forecasts. Over the past 12 months, Australia’s employment grew by 3.5%, more than twice the pace seen in the United States. • The unemployment rate increased to 4.1%, from 4.0%, as the workforce expanded by even more than the increase in jobs. This was largely due to more women looking for work and finding jobs, which lifted the participation rate to a record high of 67.3%. • While the RBA this week trimmed its cash rate by 25 basis points to 4.10%, the strength of employment will be a hurdle to further cuts in the short term given it could stoke cost pressures and prevent core inflation from slowing to the middle of the RBA's 2-3% target band. • There remain differences across Australia with strong full-time employment growth recorded in NSW, Queensland and WA – a strong indicator for the take up of property. In contrast, despite the headline growth of total employment growth in Victoria, the detail reveals that part-time employment growth outpaced full-time employment growth over the year. • By industry, solid employment growth was recorded in the Education, Retail and Utilities sectors with employment declines observed in the Manufacturing, Wholesale Trade and Finance sectors over the past 12 months. Looking for expert guidance or tailored solutions to elevate your business? We specialise in delivering results that drive success. Let us help you achieve your goals with strategic insights and personalised support. Visit our website to learn more and get in touch us at www.bwpa.com.au   BWP Advisors Richard Jenkins #bwpadvisors #theweeklylens #strategicconsulting #realestate #property #cre #commercialproperty #commercialrealestate #propertyadvisory #pavilionpartners

• According to the Centre for Population’s 2024 Population Statement, Australia’s population is projected to grow from its current level of 27.3 million to 31.3 million by mid-2035 and potentially reach 41.2 million by June 2065. • It is forecast that capital cities will grow almost twice as fast as regional and rural areas with Victoria, along with WA, recording the fastest rates of state growth, while Tasmania and South Australia will be the slowest. • The 2024 Population Statement also projected that the number of Australians aged 75 or over will increase by 49% or an extra one million people by 2034, up from 2.1 million to 3.2 million. • Sydney will expand from 5.6 million to 6.5 million over the next ten years, followed by Greater Melbourne expanding from 5.3 million to 6.4 million, and Greater Brisbane going from 2.8 million to 3.3 million. • Net overseas migration, which is the main driver of overall population growth, is forecast to moderate from its peak in 2023 at 537,000 to average 225,000 through the second half of this decade. • With Australia already experiencing a period of very low rental vacancy rates and declining dwelling construction levels, Australia’s forecast population growth highlights the need to expedite development to meet growing demand. Looking for expert guidance or tailored solutions to elevate your business? We specialise in delivering results that drive success. Let us help you achieve your goals with strategic insights and personalised support. Visit our website to learn more and get in touch us at www.bwpa.com.au   BWP Advisors Richard Jenkins #bwpadvisors #theweeklylens #strategicconsulting #realestate #property #cre #commercialproperty #commercialrealestate #propertyadvisory #pavilionpartners

IN THE NEWS I BWP Advisors shares our latest research on the state of Melbourne’s prime retail strips with COMMO. Melbourne suburban retail strip vacancies have declined to 8.6%, the lowest rate since 2018. Although the overall vacancy rate has fallen, only two individual strips current vacancy rates sit below their respective 20-year average rates – Toorak Road, South Yarra and Church Street, Brighton. Cafes and restaurants were the most prominent type of incoming tenants across the strips and continue to lead all other occupier types across all the strips, accounting for almost a third of all shops. Over the past 25 years, the biggest change in the strips has been the growth of services-based occupiers which now account for 21% of all shops. https://lnkd.in/gVh3Xyj4 With our extensive real estate investment experience and our comprehensive real estate data, BWP Advisors research provides our clients insights and projections on the Australian real estate market. Visit our website to learn more and get in touch us at www.bwpa.com.au BWP Advisors Richard Jenkins COMMO Ginnane Associates Pavilion Partners #bwpadvisors #strategicconsulting #realestate #property #cre #commercialproperty #commercialrealestate #retail #propertyadvisory #pavilionpartners

• Total Australian office vacancy rate increased to 14.7%, up slightly from 14.6% six months ago, with non-CBD markets outperforming their CBD counterparts. The vacancy rate of non-CBD office markets remained steady at 17.2% while the vacancy rate of Australian CBD office markets increased to 13.7% - the highest rate since July 1996. • There were mixed results across the Australian CBD office markets which vacancy increases recorded in Sydney, Brisbane and Hobart over the past six months with Melbourne’s vacancy rate of 18% the highest across Australian CBDs. Canberra, Perth and Adelaide all recorded vacancy rate declines over the second half of 2024. • While demand for office space remains subdued against the long-term average, those occupiers who are committing to new space, tend to lease better quality space to entice employees back into workplaces with prime office space accounting for the bulk of the take up of space. • With workplaces continuing to evolve, it is more critical than ever to strategically assess real estate needs and requirements. BWP Advisors is well positioned to meet the demands of our clients. Looking for expert guidance or tailored solutions to elevate your business? We specialise in delivering results that drive success. Let us help you achieve your goals with strategic insights and personalised support. Visit our website to learn more and get in touch us at www.bwpa.com.au   BWP Advisors Richard Jenkins #bwpadvisors #theweeklylens #strategicconsulting #realestate #property #cre #commercialproperty #commercialrealestate #propertyadvisory #pavilionpartner

• Despite Australia’s population growing still at near-record highs, new dwelling supply continues to trend down in the country. Annual dwelling commencements sit almost 20% below the 10-year average whereas Australia’s population is growing at 54% more than its long-term average. • Over the year to September 2024, 164,000 new dwellings commenced construction, well below the 200,000 new homes required to meet the Housing Accord target of 1.2 million new homes to be delivered to Australia by 2029 set by the Australian Federal Government. • By sector, new house construction sits 10% below the 10-year average with new apartment supply 30% lower than the 10-year average. • In terms of new housing supply by state, current housing commencement levels sit below their respective 10-year averages in all states and territories with the exception of Western Australia. NSW new housing levels have declined the most in comparison to other areas, with levels 20% lower than its 10-year average followed by Victoria which sit 15% below its 10-year average. Looking for expert guidance or tailored solutions to elevate your business? We specialise in delivering results that drive success. Let us help you achieve your goals with strategic insights and personalised support. Visit our website to learn more and get in touch us at www.bwpa.com.au   BWP Advisors Richard Jenkins #bwpadvisors #theweeklylens #strategicconsulting #realestate #property #cre #commercialproperty #commercialrealestate #propertyadvisory

• Black Friday sales lifted annual Australian retail trade sales to all-time high levels to $433 billion and boosted growth rates with annual retail sales growing by 2.1% over the year. • Retail trade increased across all Australia’s states and territories led by NT (+3.7) followed by WA (+3.3%) and Queensland (+3.1%).   • Sales in Food (+2.6%) and Personal (+4.8%) drove the overall increase in retail trade, however the cost-of-living pressures impacted some sectors with Household Goods (-0.2%) sales declining and activity in Cafes & Restaurants (+1.7%) moderating. • Online retail trade in Australia continues to gradually take a larger share of overall spending, hitting record highs in November 2024. According to the ABS, online sales made up 11% of total retail sales (the highest proportion since 2021) with Australian online sales with Australian consumers spending approximately $49 billion online over the past 12 months.   Looking for expert guidance or tailored solutions to elevate your business? We specialise in delivering results that drive success. Let us help you achieve your goals with strategic insights and personalised support. Visit our website to learn more and get in touch us at www.bwpa.com.au   BWP Advisors Richard Jenkins #bwpadvisors #theweeklylens #strategicconsulting #realestate #property #cre #commercialproperty #commercialrealestate #propertyadvisory