Food and beverage operators remain active in the Perth CBD

• WA household spending growth reached 7.5% year-on-year in May 2026, down marginally from 7.6% recorded in the three months prior. Spending in the miscellaneous goods and services category recorded the strongest growth (10.8% year-on-year).
• New food and beverage operators have continued to open across Perth CBD, despite relatively slow enquiry levels. Service operators are also expanding, particularly securing space in sub-regional and neighbourhood centres.

Two major developments completed over the quarter

• Two major completions were recorded over Q2 2026, totalling 16,400 sqm. Over the past 12-months, completions totalled 41,300 sqm across seven projects; below the 10-year annual average of 55,800 sqm.
• There are currently 13 major developments under construction, forecast to add 98,200 sqm by Q1 2028. In addition to projects already under construction, there are 17 projects with plans approved totalling 216,900 sqm.

Marginal rental growth across all sub-sectors

• Marginal growth in average rents was recorded across all sub-sectors during Q2 2026. Despite only marginal increases, an upward trend in rental growth has been evident across most sub-sectors over the past four years.
• Investment volumes fell over the quarter, with two major transactions recorded, totalling AUD 21.2 million. The largest transaction was the sale of a large format retail centre at 160 Chester Pass Road, Albany for AUD 14.1 million.

Outlook: Acceleration in rental growth expected over the medium term

• Rents across all sub-sectors are forecast to increase by an annual average of 2.4% to 2.8% over the next five years, provided WA household spending continues to trend positively and supply remains low.
• Investment volumes may moderate over the near term as investors remain selective in terms of potential acquisitions, given persistent global economic uncertainty and potential further interest rate hikes.