All areas of Perth's commercial property market saw increases in their median sales prices in 2024, according to REIWA's latest WA Commercial Property Update.
"Over 2024, the industrial and retail sectors were the top performers, with both recording a 15.1 per cent in increase in their median sale price per sqm," REIWA CEO Cath Hart said.
"The office sector saw moderate growth over the year, recording a 7.6 per cent increase in its median sale price per sqm.
"Price rises are likely to continue in 2025, with REIWA members reporting a strong increase in market activity and enquiry at the start of the year."
Industrial
The annual median sale price per sqm for the Perth industrial market was $2,605 at the end of December, a 15.1 per cent increase year-on-year.
Ms Hart said the strong growth in Perth's industrial market was driven by ongoing supply challenges and strong demand.
"The greatest challenge has been new supply, with limited land for new development and construction costs hampering investment in building," Ms Hart said.
"Construction costs are stabilising, and members report east coast developers are buying land, so that may see new projects come to market and ease demand slightly."
The North West sub-region had the highest annual median sale price per sqm at $2,857, followed by the South West sub-region at $2,624.
A total of 1,016 industrial sales in the Greater Perth region have been recorded so far during the 12 months to December 2024. Compared to the previous year, sales were down 11 per cent.
Ms Hart said the decline was a reflection of limited supply rather than a decline in demand.
The South East sub-region had the most sales, with 270, followed by the North West (257) and South West (253) sub-regions.
Across Perth, 35.8 per cent of industrial sales were priced between $1 million and $5 million.
Retail
The retail market recorded the strongest growth in sales activity, with the number of transactions increasing 27.5 per cent in the year to December.
There were 195 sales so far over the 12 months.
Ms Hart said this could reflect changes in investor interest.
"Our members report higher prices and reduced yields in the industrial market and are seeing some buyers look to other opportunities, such as retail," she said.
The Inner sub-region had the most sales, with 44, followed by the South West sub-region with 39.
The annual median sale price per sqm at the end of December was $4,928, which was 15.1 per cent higher than 12 months ago.
The Perth Inner sub-region had the highest annual median sale price per sqm at $7,811.
It was followed by the South West sub-region, which had a median sale price per sqm of $5,424.
Across Perth, 28.6 per cent of retail sales were priced between $250,000-$500,000.
Office
The office market recorded moderate price growth over the year.
The annual median sale price per sqm at the end of December was $4,370, 7.4 per cent higher year-on-year.
The Inner sub-region had the highest annual median sale price per sqm at $4,722. The South West sub-region had the second highest median sale price at $4,565.
A total of 355 office sales in the Greater Perth region have been recorded so far during the 12 months to December 2024. Compared with the previous year, sales were up 22 per cent.
The Inner sub-region accounted for 45.1 per cent of all office sales with 203 transactions.
Across Perth, 35.3 per cent of office sales were priced between $250,000-$500,000.
You can read the full commercial update here.
