Perth retail rents to increase by up to 2.8%

This is the projected annual rental growth over the next five years.

Retail rents across all retail sub-sectors in Perth are forecast to increase by an annual average of 2.0% to 2.8% over the next five years according to a JLL report, provided WA household spending continues to trend positively and the current low incoming supply landscape persists.

“Potential further interest rate cuts are anticipated to sustain strong investment fundamentals in the Perth market, particularly for non-discretionary retail assets,” the report added.

Here’s more from JLL:

WA household spending growth reached 7.5% year-on-year in August 2025, up from 7.3% recorded in the three months prior. Spending in the health category recorded the strongest growth (11.6% year-on-year).

New food and beverage operators have opened across the Perth CBD and neighbourhood centres, despite continued slow general enquiry levels. Service-based operators and fashion retailers are also expanding, particularly securing space in the CBD.

No major developments completed over the quarter

No major completions were recorded over Q3 2025. Over the past 12 months, completions totalled 19,100 sqm across three projects; significantly below the 10-year annual average of 60,300 sqm.

There are currently eight major developments under construction, forecast to add 156,300 sqm by Q4 2026. In addition to projects already under construction, there are 18 projects with plans approved totalling 173,000 sqm.

Investment volumes dampened over Q3 2025

Marginal growth in average rents was recorded across all sub-sectors during Q3 2025. Despite only marginal increases, an upward trend in rental growth has been evident across most sub-sectors over the past four years.

Investment volumes continued to soften, with four major transactions recorded over Q3 2025 totalling AUD 151.6 million. The largest transaction of the quarter was the sale of Joondalup Gate from APIL to AsheMorgan for AUD 79.1 million.