We’re seeing continued strength and dynamic growth across Perth’s commercial property market as 2025 progresses. Retail and industrial sectors are leading the charge, while the office market is showing promising signs of recovery after several quieter years. Here’s what we are observing across these key segments and what it means for investors, business owners, and developers.
Retail Sector Outperforms with Robust Investor Demand
We are witnessing the retail sector emerge as the standout performer this year. Investor demand is pushing median sale prices up by an impressive 18.5% year-on-year, now averaging $5,213 per square metre. The volume of retail sales has also surged, rising 23.6%, reflecting strong buyer enthusiasm. This has led to more solid support from lenders for retail property finance.
On the ground, prime action is centered in Subiaco, Mount Lawley, Leederville, and Fremantle, especially in service-oriented strip shops such as food outlets and allied health clinics. This wide demand range—from smaller investments in the $250k-$500k bracket to larger deals—shows the diversity of opportunities available.
Industrial Market Tightens Further Amid Supply Shortage
We are seeing a classic supply-demand squeeze in Perth’s commercial property industrial sector, which continues to drive median prices upward by 15.1% to around $2,733 per square metre (correlated with an increasing in loans for industrial property classes). While sales volume dipped slightly by 4.6%, this reflects the challenge of limited available stock, rather than declining demand.
Our market insight points to owner-occupiers, especially in logistics and e-commerce, as key drivers competing for scarce industrial properties. Notably, the north-west and south-west subregions are hotspots for high-value transactions. This ongoing scarcity highlights the urgent need for more industrial land release in Perth’s critical transport corridors.
Office Market Makes a Strong Comeback
We are encouraged by the signs of resurgence in the office market, where the median sale price has grown 13.8% year-on-year to approximately $4,675 per square metre. Vacancy rates have slightly increased due to new supply, but tenant demand and net absorption are improving.
Our observations indicate SMEs are fueling this recovery by opting to buy smaller strata office spaces in areas like West Perth, Subiaco, and the inner city, while investors seek well-tenanted office assets offering stable returns. Quality presentation and modern fit-outs remain critical in attracting buyers as competition stiffens.
Our Market Outlook
Looking ahead, we continue to expect continued support of lender finance for Perth commercial property driven by population growth, infrastructure investment, and improving consumer confidence. The retail and industrial sectors remain our strongest performers, although the office market recovery offers growing opportunities for savvy buyers.
Challenges around industrial land availability and cautious office market sentiment remain, but new developments and construction finance cost easing may help address these. Whether you’re investing, developing, or securing premises for business, understanding these evolving dynamics will be key to success.
About Us
Smart Business Plans provides commercial finance broker services across Australia for commercial property finance and business loans. Call 1300 262 098 now to speak to our team.
Sources: Holdsworth Real Estate. REIWA Commercial Property. JLL Perth.
