Perth office rents to grow 7.3% annually over the next five years

The limited supply pipeline will support rental growth.

A recent JLL report revealed that a limited supply pipeline in the Perth CBD market is expected to continue supporting an acceleration in prime net effective rents, forecast to average 7.3% annually over the following five years.

“Projected further cuts in interest rates may boost the attractiveness of office assets in the Perth CBD. However, investors are likely to still be selective in terms of potential acquisitions due to broader global economic uncertainty,” the report said.

Here’s more from JLL:

The headline office vacancy rate in the Perth CBD was unchanged over the quarter, at 17.1%. Similarly, the prime grade vacancy rate was unchanged at 15.6%, as occupier moves in and out of prime grade buildings remained balanced.

Net absorption in Q3 2025 totalled around -100 sqm; down from the previous quarter’s figure of 5,900 sqm. On a rolling annual basis, Perth CBD net absorption totalled 6,100 sqm.

No major completions recorded in the Perth CBD

There are no projects currently under construction in the Perth CBD, with new office supply additions expected to remain low in the short to medium term.

There are 11 projects in the Perth CBD with plans approved, totalling 299,100 sqm. However, proposed new office projects are likely to require substantial pre-commitment to proceed.

Prime office yields unchanged over the quarter

Average prime net face rents increased 1.3% over the quarter to AUD 674 per sqm p.a., reflecting year-on-year growth of 2.1%. Average prime net effective rents increased 1.3% over the quarter to AUD 291 per sqm p.a., with year-on-year growth of 2.3%.

Perth CBD prime office yields were stable over Q3 2025 at a midpoint of 7.38%, with secondary yields also stable at a midpoint of 9.00%. On an annual basis, prime office yields were unchanged.