New data from Colliers shows luxury retail and fine-dining services across Australian CBDs continue to perform well despite rising living costs.

According to Colliers’ research, Australian consumers have spent 27 per cent on dining and restaurant services in the year’s first quarter.

This growth is led by millennials, people aged between 25 to 39, who have overtaken Baby Boomers as the largest generational group in Australia, now accounting for 22 per cent or 5.6 million of the population.

The luxury retail market also expects spending to increase through 2027, up 5.4 per cent annually, mainly by the same category.

Nik Potter, associate director of Colliers research, said 62 per cent of Australians under 39 currently do not own a home indicating that the rising interest rates impact them less.

“When we couple this demographic with the higher savings rates and record low unemployment, it starts to present a segment of the Australian economy with a potentially high-level disposable income, who are immune to the current variability of rising mortgage rates, and keen to enjoy fine-dining experiences across our CBDs, especially after the pandemic.”

This year, Sydney’s CBD welcomed 13 new high-end restaurants while Melbourne CBD and metro areas reported nine new openings.

Director of Colliers’ retail leasing, Adam Lester, said fine-dining food and beverage is currently Melbourne’s highest-performing retail category, with a surge in enquiry for high-end hospitality options within commercial buildings.

He added that premium restauranteurs are also looking for flagship opportunities within the city as demand grows.