Perth retail rents to grow by an average of 2.0% to 2.7% annually until 2030

The neighbourhood subsector is expected to see the strongest growth.

Provided WA retail spending continues to trend positively, JLL revealed in a recent report that rents across all sub-sectors are forecast to increase by an annual average of 2.0% to 2.7% from 2025 to 2030, with the strongest growth anticipated in the neighbourhood sub-sector.

Additionally, the report said strong investment fundamentals are expected to be sustained in the Perth market, particularly for non-discretionary retail assets, as further interest rate cuts are anticipated over the second half of 2025.

Here’s more from JLL:

One major development completed over Q2 2025, totalling 6,777 sqm. Over the past 12 months, completions totalled 22,700 sqm; significantly below the 10-year annual average of 60,300 sqm.

There are currently seven major developments under construction, forecast to add 50,300 sqm by Q4 2026. In addition to projects already under construction, there are 17 projects with plans approved totalling 169,100 sqm.

Investment volumes softened over Q2 2025

Marginal growth in average rents was recorded across all sub-sectors during Q2 2025. Despite only marginal increases to gross rents, an upward trend in rental growth has been evident across most sub-sectors over the past four years.

Investment volumes softened, with three major transactions recorded over Q2 2025 totalling AUD 199.2 million. The largest transaction of the quarter was the sale of IKEA Perth to IKEA from GDI Property Group for AUD 163.8 million.