Continued growth in WA retail turnover

• WA retail trade growth reached 4.5% year-on-year in March 2025, up from 3.6% recorded in the three months prior. Spending in the other retail category, which include recreational goods retailing, recorded the strongest growth (6.5% year-on-year).
• Despite continued slow general enquiry levels, new food and beverage operators have opened in the Perth CBD. Service retailers are also expanding, particularly securing space in sub-regional centres.

No major developments completed over the quarter

• No major developments completed over Q1 2025. Over the past 12 months, completions totalled 20,600 sqm; significantly below the 10-year annual average of 60,300 sqm.
• There are currently seven major developments under construction, forecast to add 51,100 sqm by Q4 2026. In addition to projects already under construction, there are 15 projects with plans approved totalling 265,900 sqm.

Significant uptick in investment volumes over the quarter

• Marginal growth in average rents was recorded across all sub-sectors during Q1 2025. Despite only marginal increases to gross rents, an upward trend in rental growth has been evident across most sub-sectors over the last three and a half years.
• Investment volumes increased significantly, with seven major transactions recorded over Q1 2025 totalling AUD 635.0 million. The half stake of Cockburn Gateway Shopping Centre and Belmont Forum represents the largest retail portfolio capital partnering deal since 2018.

Outlook: Acceleration in rental growth expected over the medium term

• Provided retail spending in WA remains positive over the medium term, rents across all sub-sectors are forecast to increase by an annual average of 2.0% to 2.7% from 2025 to 2030, with strongest growth anticipated in regional and neighbourhood sub-sectors.
• As further potential interest rate cuts are delivered over the course of the year, strong investment fundamentals and activity are expected to be sustained in the Perth retail market.