Headline vacancy on downward trend

• The headline office vacancy rate in the Perth CBD decreased 0.2 percentage points (pps) to 16.3% in Q1 2026. Similarly, the prime grade vacancy rate fell 0.3 pps to 14.7%, driven by centralisation and expansionary activity by large occupiers (>1,000 sq.m.).
• Net absorption in Q1 2026 totalled 1,300 sq.m.; down from the previous quarter’s figure of 10,800 sq.m. On a rolling annual basis, Perth CBD net absorption totalled 17,900 sq.m.

Limited supply pipeline 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 sq.m.
• 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 were unchanged over the quarter at AUD 674 per sq.m. p.a., however reflecting year-on-year growth of 1.6%. Average prime net effective rents increased 2.2% to AUD 298 per sq.m. p.a., with year-on-year growth of 4.0%.
• Perth CBD prime office yields were stable over Q1 2026 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.

Outlook: Rental growth expected to be supported by a limited supply pipeline

• Prime net effective rents in the Perth CBD market are expected to accelerate over the medium-term due to a limited supply pipeline.
• Investors are likely to still be selective in terms of potential acquisitions due to broader global economic uncertainty, along with re-emerging inflationary pressures, which is likely to halt the monetary policy easing cycle.