Cap rates – or yields – on convenience retail assets such as petrol stations have fallen to levels lower than when the RBA started raising rates in May and will tighten further – albeit minimally – next year as investors pile into an asset class of almost 7000 sites.

Demand by investors would push the cap rates below the 5.49 per cent they reached in the March quarter, down from the December quarter’s peak of 6.35 per cent and the lowest since the current cycle of tightening began last year, Burgess Rawson’s Convenience Retail report says.