Retail Surge Leads Perth’s Commercial Property Price Growth

Retail has emerged as the top-performing commercial property sector in Perth over the past year, according to REIWA’s latest Commercial Property Update.

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The median sale price per square metre for retail properties hit $5,238 for the 12 months ending March, a 23.8% increase year-on-year. 

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The number of sales for the period was also up significantly with 212 retail sales recorded, representing a 34% increase year-on-year.

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Office and Industrial record healthy price rises

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The office sector saw a 10.2% annual increase in the median sale price per sqm, reaching $4,500. Sales activity in this sector has been led by local owner-occupiers, particularly small business professionals like financial advisors, consultants, and medical specialists. Spaces between 40–80 sqm in the $250,000–$500,000 price bracket were most in demand, making up 36.2% of all sales.

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Similarly, industrial commercial properties also recorded a healthy price rise with the annual median sale price per sqm hitting $2,675, which is 14.5% higher year-on-year.

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Investors are cautiously re-entering the market, attracted by Perth’s comparative affordability. However, tenant demand remains a key consideration, especially with large volumes of vacant office stock in areas like West Perth and East Perth.

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A Shift in Investor Sentiment

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REIWA President Suzanne Brown said the surge in prices was being driven by increased investor interest and greater market confidence.

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Eastern states buyers are also showing interest in Perth’s retail sector, drawn by its relatively strong yields and attractive price points compared to Sydney and Melbourne.

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Western Australia’s strong population growth is also playing a critical role in driving demand more broadly. 

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This dual effect is pushing up demand for commercial properties across Perth and contributing to the momentum behind the sector’s price growth.

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However, investors remain discerning, with a clear focus on assets with secure, long-term tenancies. This trend is particularly evident in suburban and lifestyle precincts, where local demand is rising alongside investor activity.

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What This Means for Perth Property Investors

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Perth’s commercial property market continues to show resilience and opportunity, particularly in the retail and industrial sectors. 

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The retail market’s price surge indicates a renewed appetite for well-located, securely-tenanted assets, especially in growth corridors and suburban hubs.

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As population growth fuels retail demand and industrial supply remains constrained, investors and owner-occupiers alike are finding value in Perth’s diverse commercial landscape. 

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With prices and yields still competitive compared to the Eastern States, Perth remains a compelling market for strategic commercial investment.

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At Rent Choice, we keep our finger on the pulse of local property trends so our clients can make confident, informed decisions. Whether you’re looking to invest in retail, industrial or office space, our team is here to help you navigate the evolving market with expert advice and tailored solutions.

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Source:

REIWA - 2025-03 REIWA Commercial Property Update - Page 1. (n.d.). https://view.publitas.com/reiwa-1/2025-03-reiwa-commercial-property-update/page/1?utm_source=sfmc&utm_medium=email&utm_campaign=250528_Media_Retail_emerges_as_perths_top_performing_commercial_market&sfmc_id=2556526

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REIWA - 250528_retail_emerges_as_perths_top_performing_commercial_market - Page 1. (n.d.). https://view.publitas.com/reiwa-1/250528_retail_emerges_as_perths_top_performing_commercial_market/page/1?utm_source=sfmc&utm_medium=email&utm_campaign=250528_Media_Retail_emerges_as_perths_top_performing_commercial_market&sfmc_id=2556526

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