Perth’s commercial property market enjoyed robust growth across all sectors in 2024, with significant increases in median sales prices, as detailed in REIWA’s latest WA Commercial Property Update.
This surge in commercial real estate aligns with the city’s broader property sector, which also set new records for median sale prices of houses and units by year-end.
In the industrial sector, the annual median sale price per square meter reached $2,605 by the end of December, marking a 15.1% increase year-on-year.
REIWA CEO Cath Hart (pictured) attributed this strong growth to ongoing supply challenges and heightened demand.
“The greatest challenge has been new supply, with limited land for new development and construction costs hampering investment in building,” Hart said.
However, with construction costs stabilising and new land acquisitions by east coast developers, there is potential for easing demand slightly in the future.
Despite a 11% drop in sales from the previous year, reflecting limited supply rather than decreased demand, the industrial market remains robust with significant transactions in the North West and South West sub-regions.
The retail sector outperformed other sectors in terms of sales activity, witnessing a 27.5% increase in transactions during the year.
With 195 sales recorded over the 12 months, the sector saw the annual median sale price per square meter climb to $4,928, a 15.1% rise from the previous year.
This increase in investor interest shifted slightly from industrial to retail, particularly noticeable in the Inner and South West sub-regions.
The office market experienced moderate growth, with the annual median sale price per square metre increasing by 7.4% to $4,370.
The Inner sub-region saw the highest prices, reflecting ongoing demand for prime office space. Office sales in Greater Perth surged by 22% from the previous year, with significant activity concentrated in the Inner sub-region, REIWA reported.
