Retail was the top performing sector for price growth in the Perth commercial market in the year to March 2025, according to REIWA's March Commercial Property Update.
The annual median sale price per sqm for the Perth retail market was $5,238 at the end of March, a 23.8 per cent increase over the year and 6.3 per cent higher than the 12 months to December 2024.
REIWA President Suzanne Brown said growth in the retail sector was supported by renewed investor interest and improved confidence in the market.
"Our members are seeing a broad range of investors, with many turning to retail due to rising prices and reduced yields in the industrial market," she said.
"There has also been increased enquiry from Eastern States groups, who are comparing our yields and pricing to Sydney and Melbourne and seeing value.
"While investor sentiment has improved, they remain cautious and are focused on properties with strong tenancies in place."
Ms Brown said WA's strong population growth was also supporting demand in the retail market.
"Population growth creates more customers for existing businesses and it also brings in people wanting to establish their own businesses," she said.
"This leads to demand for retail properties and, combined with investor interest, is creating momentum in suburban and lifestyle precincts."
The Inner sub-region had the highest annual median sale price per sqm at $7,500. It was followed by the South West sub-region at $6,650 per sqm.
Across Perth, 28.7 per cent of all retail sales were priced between $250,000-$500,000.
A total of 212 retail sales in the Greater Perth region have been recorded so far during the 12 months to March 2025. Compared with the previous year, sales were up 34.2 per cent.
The Inner sub-region had the most sales, with 57. The South West sub-region recorded the second-highest amount of sales, with 39 – closely followed by the North West and South East with 38 each.
Industrial
The industrial market also performed well over the year to March.
The annual median sale price per sqm at the end of March was $2,675 – 14.5 per cent higher year-on-year and 2.7 per cent higher than the year to December 2024.
The Inner sub-region had the highest annual median sale price per sqm at $3,333.
Across Perth, 37.6 per cent of industrial sales were priced between $1 million-$5 million.
A total of 1,043 industrial sales in the Greater Perth region have been recorded so far during the 12 months to March 2025. Compared with the previous year, sales were down 7.6 per cent.
Ms Brown said the decline in sales volumes was a reflection of limited supply, not a drop in demand.
"REIWA members report they continue to field strong enquiry, particularly from businesses wanting to secure their own premises, but many are struggling to find the right property," she said.
"There is strong competition for quality properties, with some buyers willing to pay above the asking price to secure them.
"While owner occupiers are leading the charge in the industrial market, investors remain active with strong interest in leased properties with quality tenants in place."
The South West sub-region recorded the most sales, with 272. The South East sub-region followed closely behind with 271 sales.
Office
Over the 12 months to March, the office market recorded a 10.2 per cent increase in the annual median sale price per sqm, to $4,500.
This was 2.9 per cent higher than the 12 months to December 2024.
Ms Brown said the office market had seen a modest rebound in sales, particularly to local owner-occupiers.
"There has been a lot of interest in office spaces priced between $250,000 and $500,000, which made up 36.2 per cent of sales over the past year," she said.
"Buyers are typically looking for premises between 40 to 80 sqm for their own use, with some members reporting particular interest from financial advisors, consultants and medical specialists.
"Well-presented spaces with good natural light, parking and requiring minimal expenditure are achieving good prices. Those needing significant work are proving harder to sell."
While investors remained cautious, Ms Brown said there were signs of renewed interest.
"Our members have seen some Eastern States investors start to re-engage with Perth's office market, drawn by the comparative affordability to the Eastern States," she said.
"Those looking to invest need to consider tenant demand. There are still large amounts of office space for lease in suburbs like West Perth and East Perth. And tenants prefer properties that are fitted out, as fitting a property out at $1,500-$2,000 per sqm adds considerable expense to their move.
"Many tenants are also seeking incentives, such as rent-free periods."
The Inner sub-region had the highest annual median sale price per sqm at $4,821 and recorded the most sales with 195. The South West sub-region followed closely behind at $4,806 per sqm.
A total of 453 office sales have been recorded so far in the Greater Perth region in the year to March 2025. This was an increase of 12.4 per cent over the year.
You can read the full commercial update here.
