We’re pleased to share our latest commercial property update for Perth’s south-east, covering Welshpool, Kewdale, Belmont, Cannington, Victoria Park, Burswood and Ascot.
Following our last EOFY snapshot, we look at how industrial, office and retail property have performed and what we expect in 2026/27. REIWA’s latest Commercial Property Update, released in March 2026, covers the year to December 2025. We use this period for all REIWA figures, alongside broker, Property Council and NAB reports extending through June and July 2026.
Our family-owned team brings over 35 years’ experience in Perth’s south-east commercial market. Across Perth, sales volumes fell while median prices rose. Below, we look at the local results and what they mean for owners planning to hold, lease or sell.
Industrial remained Perth’s strongest commercial sector in the year to December 2025, according to REIWA. Office also recorded strong price growth, while retail activity slowed across the metro area.
Industrial is still the best performer in Perth – prices are up sharply and there’s very little vacant space, but fewer properties are changing hands simply because so little is available to buy.
Despite rising prices, commercial property sentiment weakened. NAB’s Commercial Property Survey for the June 2026 quarter recorded a WA index of 14, down from 22 in March. Industrial sentiment fell from 57 to 20 and office sentiment was minus 20. Retail improved from 50 to 58. The Reserve Bank increased the cash rate three times in 2026 to 4.35%, with no change since May.
Even though prices rose, owners and investors are feeling more cautious than a year ago – higher interest rates and softer confidence are weighing on the mood, especially in industrial.
Results across the suburbs we service differ from the wider Perth market. REIWA’s South East sub-region is the closest published match for this area. Below, we look at its year to December 2025 figures alongside more recent reports and our experience working with local owners and tenants.
The industrial supply squeeze we discussed earlier this year continues to limit options for businesses looking for premises. Main Roads has also awarded the construction contract for the Tonkin Highway Corridor upgrade, including a full interchange at Welshpool Road East.
Our local industrial market is doing even better than Perth overall – rents are rising, almost nothing sits empty, and very little new space is being built, so well-located warehouses stay in high demand.
We still see industrial as the most secure long-term holding in our area. Vacancy is 1.0% and rents in Welshpool and Kewdale continue to rise, although we don’t expect another year of 15% price growth. Industrial sentiment fell from 57 to 20 in NAB’s June quarter survey, while super prime yields increased slightly to 6.0%. We expect further rent growth, with more moderate price increases.
The local office recovery is the biggest change since our last update. WA office sentiment remains the weakest in the country, yet the South East was the only Perth sub-region to record sales growth. Owner-occupiers and local investors continue to buy smaller suburban offices, and we expect this demand to hold. There is plenty of scope for growth in the local retail market. Local median prices rose 28%, WA recorded the country’s lowest retail vacancy in NAB’s survey, and sentiment improved. New supply in 2026 remains the main risk.
For commercial property owners in Perth’s south-east, the priority is to make sure lease terms reflect current market conditions.
Industrial owners with a market rent review due in FY27 have useful local benchmarks. East precinct rents of $170 per sqm and incentives of 10% provide a guide (Q1 2026). With vacancy at 1.0%, tenants have limited alternatives. These conditions support renewals at current market rents and reduce the need for generous incentives when leasing vacant premises.
Office owners should allow for higher incentives when re-letting and focus on retaining reliable tenants. For retail owners, tenant mix and lease security remain important. In our experience, buyers place considerable value on both.
For owners weighing up whether to hold or sell, prices remain high despite lower sales volumes and weaker sentiment. We’re still seeing good buyer competition for well-tenanted properties. Owners who plan to hold should continue to benefit from rent growth. With the cash rate at 4.35% following three increases this year, rent review outcomes matter for owners managing property loan repayments.
Start with an appraisal to understand what your property would achieve in the current market.
Our outlook for 2026/27 assumes WA economic growth eases to 2.25%, in line with the State Budget forecast, and the cash rate remains around 4.35%.
We expect Perth industrial price growth to slow to single digits in REIWA’s year to December 2026 figures, down from 15.5%, with sales remaining below 1,100. Rents in the East precinct should continue to rise, and we expect Perth vacancy to remain under 2% on the same measure in the first half of 2027. Limited industrial land will continue to support demand for well-located warehouses in Welshpool and Kewdale.
We expect the South East to record more than 100 office sales again in the year to December 2026, with Perth CBD vacancy falling below 15% by the Property Council’s July 2027 report. WA office sentiment is likely to remain negative for the rest of 2026. Suburban offices with parking, natural light and a completed fit-out should continue to sell ahead of the wider market.
With new retail supply coming to market, we don’t expect another 28% rise in the local median price. We expect the median to remain above $5,500 per sqm in REIWA’s year to December 2026 figures, with WA retail vacancy staying below 5% in NAB’s survey through mid-2027. Centres with food, medical and essential services tenants should continue to perform best.
Perth’s south-east continues to benefit from population growth and demand for commercial space. WA recorded population growth of 2.2%, the fastest of any state (ABS, year to December 2025). Industrial vacancy is the lowest in the country, while local office and retail sales have held up better than the metro average. For owners, the focus is on maintaining rental income as conditions change.
This means completing rent reviews on time with current market evidence, planning for lease expiries 12 months ahead, and dealing with maintenance promptly to help retain good tenants. Our property management team handles these responsibilities across Perth’s south-east, with clear financial and maintenance reporting to keep you informed about your property’s performance.
Whether you’re planning to hold, lease or sell, our team is here to help you assess your options for the year ahead.
The year to December 2025 and the first half of 2026 show three main trends across Perth’s south-east:
For advice on your commercial property, contact us today on (08) 9277 6677 or speak with our team online.
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