Perth Commercial Property Market Update: Retail Sector Leads Growth in 2025
Perth’s commercial property market has demonstrated robust growth in the year leading up to March 2025, with the retail sector emerging as the top performer. According to the Real Estate Institute of Western Australia (REIWA), the annual median sale price per square metre for retail properties reached $5,238, marking a 23.8% increase over the year and a 6.3% rise compared to the 12 months ending December 2024.
Retail Sector: Investor Confidence and Population Growth Drive Demand
REIWA President Suzanne Brown attributes the robust growth in the retail sector to renewed investor interest and improved market confidence. “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 stated.
Additionally, increased inquiries from Eastern States investors highlight Perth’s comparative value in yields and pricing. Western Australia’s strong population growth further supports demand, as it brings more customers for existing businesses and individuals looking to establish new ventures.
The Inner sub-region recorded the highest annual median sale price per square metre at $7,500, followed by the South West sub-region at $6,650. Notably, 28.7% of all retail sales across Perth were priced between $250,000 and $500,000. A total of 212 retail sales were recorded in Greater Perth during the 12 months to March 2025, reflecting a 34.2% increase compared to the previous year.
Industrial Market: Steady Performance Amid Limited Supply
The industrial sector also demonstrated solid performance, with the annual median sale price per square metre reaching $2,675—a 14.5% year-on-year increase and a 2.7% rise from the year ending December 2024. The Inner sub-region led with a median price of $3,333 per square metre.
Despite a 7.6% decline in sales volumes, totalling 1,043 industrial sales in Greater Perth, the dip is attributed to limited supply rather than decreased demand. “REIWA members report they continue to field strong enquiries, particularly from businesses wanting to secure their own premises, but many are struggling to find the right property,” Ms. Brown explained.
Owner-occupiers are leading the charge in the industrial market, with investors showing strong interest in leased properties with quality tenants. The South West sub-region recorded the most sales at 272, closely followed by the South East with 271 sales.
Office Market: Modest Rebound with Owner-Occupier Interest
The office market experienced a 10.2% increase in the annual median sale price per square metre, reaching $4,500, 2.9% higher than the 12 months to December 2024. Sales have seen a modest rebound, particularly among local owner-occupiers.
There has been significant interest in office spaces priced between $250,000 and $500,000, accounting for 36.2% of sales over the past year. Buyers are typically seeking premises between 40 to 80 square metres for personal use, with financial advisors, consultants, and medical specialists showing particular interest.
Well-presented spaces with good natural light, parking, and minimal required expenditure are achieving favourable prices. However, properties needing significant work are proving more challenging to sell.
While investors remain cautious, there are signs of renewed interest, especially from Eastern States investors attracted by Perth’s comparative affordability. The Inner sub-region had the highest annual median sale price per square metre at $4,821 and recorded the most sales with 195. The South West sub-region followed closely at $4,806 per square metre. A total of 453 office sales were recorded in Greater Perth during the year to March 2025, marking a 12.4% increase over the previous year.
Conclusion
Perth’s commercial property market showcases dynamic growth across retail, industrial, and office sectors. The retail sector leads with significant price growth, driven by investor confidence and population increases. The industrial market remains robust despite supply constraints, and the office sector is experiencing a modest rebound with heightened owner-occupier activity.
For investors and businesses seeking opportunities in Perth’s evolving commercial landscape, now is an opportune time to explore the market.
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