Occupier demand softened in Q1 2025

• Occupier demand in the Perth market decreased over Q1 2025, with 38,800 sqm of gross take-up recorded across six major occupier moves (≥3,000 sqm). Quarterly tenant activity was also below the two-year quarterly average of 69,700 sqm.
• Industrial and logistics gross take-up totalled 300,800 sqm over the past 12 months, significantly above the 10-year average of 213,500 sqm. Demand was led by the transport, postal & warehousing (25.1%), manufacturing (18.3%) and wholesale trade (12.5%) sectors.

No major completions recorded over the quarter

• No major developments (≥3,000 sqm) completed over Q1 2025. However, ten projects totalling 165,100 sqm are under construction, with expected completion by early-2027.
• Eleven projects totalling 149,200 sqm are in the plans approved stage, and four projects totalling 26,200 sqm are in the plans submitted stage. The majority (86.5%) of these projects have not been pre-committed.

Uptick in rents across all precincts over Q1 2025

• Average prime existing net rents increased across all precincts over Q1 2025. Strongest quarterly growth was recorded in the North precinct (4.0%), followed by the South (3.6%) and East (3.5%) precincts.
• Prime midpoint yields across all precincts were stable at 6.50% over the quarter. On an annual basis, yields softened 25 bps across all three precincts.

Outlook: Robust occupier demand to support acceleration in rental growth

• Speculative supply remains prominent in the Perth market despite still-elevated construction costs and high labour costs. The supply will be supported by occupier demand expected over the short term.
• Rental growth is forecast to accelerate over the short term due to supply scarcity and robust occupier demand in the Perth market. Prime yields are expected to hold steady over the rest of 2025.