The industrial sector emerged as the star performer in the Perth commercial property market for the year to June 2024, according to REIWA’s Commercial Property Update. Strong demand, coupled with limited supply, pushed prices upward in this sector. While the office market experienced a notable surge in sales, particularly in suburban areas, the retail sector faced challenges, especially in older, outer-lying regions.
Industrial Sector:
The industrial sector continued to thrive, driven by robust demand and limited supply. This dynamic led to a significant increase in prices, with the annual median sale price per square meter reaching $2,389 at the end of June 2024, a 13.6% increase from the previous year. The Inner sub-region commanded the highest prices, reaching $2,985 per square meter. Despite this growth, the overall sales volume in the industrial sector declined slightly by 5.3% compared to the previous year.
Office Market:
The office market exhibited mixed performance across Perth, with suburban areas experiencing growth fueled by the increasing trend of working from home. The development of suburban villages to cater to this trend further boosted demand for office space. Sales in the office sector surged by 20.3% compared to the previous year, with the Inner sub-region accounting for nearly half of all office sales. However, the annual median sale price per square meter for offices declined by 3.5% to $4,130.
Retail Market:
The retail market presented a more challenging landscape, with performance varying across different areas. While some shopping centers, such as Karrinyup and Joondalup, thrived due to their strong reputation and tenant demand, older retail centers in outer-lying areas faced difficulties. The retail sector saw an 18.4% increase in sales volume compared to the previous year, but the annual median sale price per square meter decreased by 4.1% to $4,395.
Overall, the Perth commercial property market exhibited a diverse performance in the year to June 2024. The industrial sector outshone the others, while the office market experienced growth in suburban areas. The retail sector faced challenges, particularly in older regions. For the most accurate and up-to-date information on specific areas, consulting with a REIWA commercial agent is recommended.