Strong Performance Across Perth’s Commercial Property Market in 2024

Perth’s commercial property market recorded solid growth in 2024, with all sectors experiencing an increase in median sales prices, according to REIWA’s latest WA Commercial Property Update.

“Industrial and retail were the standout performers, both recording a 15.1 per cent increase in their median sale price per square metre,” REIWA CEO Cath Hart said.

“The office sector also saw steady growth, with a 7.6 per cent rise in its median sale price per square metre over the year.

“With REIWA members reporting strong market activity and increased enquiry levels at the start of 2025, we expect price growth to continue.”

Industrial Market

The industrial sector continued to show strength, with the annual median sale price per square metre reaching $2,605 in December—up 15.1 per cent year-on-year.

Ms Hart attributed this growth to ongoing supply constraints and sustained demand.

“The key challenge has been new supply, with limited land availability and high construction costs slowing new developments,” she said.

“However, construction costs are beginning to stabilise, and members report increasing interest from east coast developers purchasing land, which could lead to new projects coming to market and a potential easing in demand.”

Among Perth’s industrial sub-regions:

• The North West recorded the highest median sale price per square metre at $2,857.
• The South West followed closely at $2,624.

A total of 1,016 industrial sales were recorded across Greater Perth in the 12 months to December, an 11 per cent decline from the previous year. However, Ms Hart noted that this drop reflected limited supply rather than reduced demand.

The highest sales activity was in:

• The South East sub-region (270 sales)
• The North West sub-region (257 sales)
• The South West sub-region (253 sales)

Notably, 35.8 per cent of industrial sales were in the $1 million to $5 million price range.

Retail Market

The retail sector led the way in sales activity, with transaction volumes rising 27.5 per cent year-on-year to 195 recorded sales in 2024.

Ms Hart suggested that investor interest could be shifting.

“Our members report that some buyers, facing higher prices and reduced yields in the industrial sector, are now exploring opportunities in the retail market,” she said.

Retail sales were most concentrated in:

• The Inner sub-region (44 sales)
• The South West sub-region (39 sales)

The annual median sale price per square metre for retail properties rose 15.1 per cent to $4,928.

By sub-region:

• The Perth Inner market recorded the highest price at $7,811 per square metre.
• The South West followed at $5,424 per square metre.

Additionally, 28.6 per cent of all retail transactions were priced between $250,000 and $500,000.

Office Market

Perth’s office market saw moderate price growth, with the annual median sale price per square metre increasing 7.4 per cent to $4,370 in December 2024.

The highest office sale prices per square metre were recorded in:

• The Inner sub-region ($4,722)
• The South West sub-region ($4,565)

A total of 355 office sales took place in Greater Perth in 2024—a 22 per cent increase from the previous year.

Sales activity was highest in:

• The Inner sub-region, which accounted for 45.1 per cent of all office transactions, with 203 sales.

35.3 per cent of office sales were in the $250,000 to $500,000 price range.

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