Category:   Commercial NewsCommercial Property InvestmentProperty Insights

Author:   Paul Scarfone

Date:   14 September 2026

Last Update:   29 September 2026

EOFY Commercial Property Snapshot: South-East Perth 2026/27 Outlook

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.

Perth Commercial Market Overview

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 remains strong:

• Median sale price reached $2,935 per sqm, up 15.5% year on year (REIWA, year to December 2025)
• Sales fell 12.5% to 1,009 as available stock remained limited (REIWA, year to December 2025)
• Vacancy fell to 1.0% in the first half of 2026 (Industrial and Logistics Vacancy Report, 1H 2026)
• Gross take-up reached 370,600 sqm in the 12 months to June 2026, well above the 10-year average of 228,300 sqm (Perth Industrial Market Dynamics, Q2 2026)

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.

Office prices continued to rise:

• Median sale price rose 9.8% to $4,844 per sqm across Greater Perth (REIWA, year to December 2025)
• Sales fell 3% to 479 (REIWA, year to December 2025)
• Perth CBD vacancy fell to 15.4% in July 2026 from 16.9% in January (Property Council of Australia Office Market Report, July 2026)

Retail growth slowed across Perth:

• Median sale price rose 4% to $5,237 per sqm (REIWA, year to December 2025)
• Sales fell 9.4% to 193 (REIWA, year to December 2025)
• Regional shopping centre yields tightened 25 basis points over the year (Perth Retail Figures, Q1 2026)

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.

Suburb Spotlights

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.

Industrial demand in Welshpool, Kewdale and Belmont

• The South East recorded 251 industrial sales, about a quarter of all Perth industrial sales, at a median of $2,889 per sqm, up 16% (REIWA, year to December 2025)
• Prime net face rents in the East precinct, including Welshpool and Kewdale, reached $170 per sqm, up 6.3% year on year, with incentives at 10% (Perth Industrial State of the Market, Q1 2026)
• The East and South submarkets accounted for 91% of Perth’s industrial leasing in the March 2026 quarter (Q1 2026)
• New supply remains limited. The only completion in the March quarter was a 26,000 sqm property in Kewdale, built for an owner-occupier (Q1 2026). Around 70% of the 2026 to 2028 development pipeline is already pre-committed (Q1 2026)

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.

Offices in Victoria Park, Burswood and Ascot

• The South East was the only Perth sub-region where office sales grew, up 4.2% to 100, at a median of $4,552 per sqm, up 6.7% (REIWA, year to December 2025)
• Smaller suburban offices continue to appeal to owner-occupiers seeking parking and lower fit-out costs. Perth CBD prime office incentives reached 47% (Perth CBD Office Market, March 2026)
• In Ascot, the City of Belmont’s Local Planning Scheme 15 Amendment 24 covers 61.3 hectares around Ascot Racecourse and proposes rezoning some mixed-use and unzoned land to Commercial (EPA determination, February 2026)
• Published vacancy figures are not available for these individual suburbs, so our assessment draws on REIWA’s sales data and our work in the area. Demand for well-presented, fit-out-ready offices remains steady.

Retail in Belmont and Cannington

• The South East recorded 42 retail sales, steady year on year, at a median of $5,665 per sqm, up 28% (REIWA, year to December 2025). The local market outperformed Greater Perth, where prices rose 4% and sales fell 9.4%
• WA household spending was up 7.4% year on year to February 2026 (Perth Retail Figures, Q1 2026)
• NAB’s survey recorded WA retail vacancy at 3.8% in the June 2026 quarter, the lowest of any state (NAB Commercial Property Survey, Q2 2026)
• Westfield Carousel in Cannington and Belmont Forum in Belmont continue to support local retail activity. Forecasts indicate around 119,400 sqm of new retail space across Perth in 2026, with neighbourhood centres accounting for 27%. The local 28% price rise is encouraging, but it reflects a small number of sales rather than an established rate of annual growth.

The Expert Takeaway

Industrial

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.

Office & Retail

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.

What This Means for Owners in Perth’s South-East Corridor

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.

Expert Tip:

Start with an appraisal to understand what your property would achieve in the current market.

Looking Ahead: Our Predictions for 2026/27

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%.

Industrial

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.

Office

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.

Retail

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.

How to Navigate the Market in the Year Ahead

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.

Responsive property management remains key.

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.

Final Thoughts

The year to December 2025 and the first half of 2026 show three main trends across Perth’s south-east:

1. Industrial remains our preferred sector for owners seeking a secure long-term holding, with low vacancy and rising rents. We expect price growth to slow.
2. The local office recovery is the biggest change, with continued buyer demand for smaller suburban properties.
3. Retail offers the greatest scope for growth locally, although new supply remains the main risk.

For advice on your commercial property, contact us today on (08) 9277 6677 or speak with our team online.

Sources and data used in this report

Key Sources (in addition to our 35 years of experience)

1. REIWA, Industrial was Perth’s top performing commercial market in the year to December 2025 (published 12 March 2026). Perth-wide industrial, office and retail medians and sales volumes.
2. REIWA, Perth Commercial Property Market Update December 2025, full report (published 12 March 2026). South East sub-region sales counts and medians for all three sectors.
3. Australia’s Industrial and Logistics Vacancy Report 1H26 (published 30 June 2026). Perth industrial vacancy of 1.0%.
4. Perth Industrial Market Dynamics Q2 2026 (published 6 August 2026). Gross take-up of 370,600 sqm against the 10-year average.
5. Perth Industrial State of the Market Q1 2026 (published 21 April 2026). East precinct rents and incentives.
6. Australian Industrial and Logistics Quarterly Snapshot Q1 2026 (published 2 April 2026). Submarket leasing shares and the Kewdale completion.
7. Perth Industrial and Logistics Figures Q1 2026 (published 13 April 2026). Pipeline pre-commitment and super prime yields.
8. Property Council of Australia, Office Market Report July 2026 Chartbook (published August 2026). Perth CBD office vacancy.
9. Perth CBD Office Market with West Perth update (published March 2026). Perth CBD prime incentives of 47%.
10. Perth Retail Figures Q1 2026 (March 2026 quarter edition). Retail yields, household spending and the 2026 supply pipeline.
11. NAB, Commercial Property Survey Q2 2026 (published late July 2026). WA and sector sentiment indices and survey-reported WA retail vacancy.
12. Reserve Bank of Australia, Cash Rate Target (read 11 September 2026). The 2026 cash rate path to 4.35%.
13. WA Department of Treasury, Budget Paper No. 3, Economic and Fiscal Outlook 2026-27 (presented 7 May 2026). WA Gross State Product growth forecast.
14. Australian Bureau of Statistics, National, state and territory population, December 2025 (published 18 June 2026). WA population growth of 2.2%.
15. Main Roads Western Australia, Tonkin Highway Corridor (page last updated 4 September 2026). Contract award and the Welshpool Road East interchange.
16. Environmental Protection Authority WA, City of Belmont Local Planning Scheme 15 Amendment 24 (determination 20 February 2026). The 61.3 hectare Ascot scheme amendment.