E-commerce fuelled property boom?
The AFR commented that if Australia follows the same e-commerce trends as the US, the demand for new industrial property here will surge. According to Colliers International, "Australia's e-commerce sector is at an eight-year lag to the US. Applying the same annual growth rate in the share of US online retail sales between 2009 and 2017 to Australia, Australia's retail online share should increase to 9.9% by 2025." The total floor space in property lease deals that occurred in 2017 related to the e-commerce was around 150,000 sq. metres, compared with around 50,000 sq. metres in 2013. Remembering that everything is one of a kind, we think that comparisons between regions can be misleading. Australian e-commerce faces a range of unique logistical challenges. It is unlikely that the trend down under will be the same as in the US.