Headline vacancy declined over Q4 2025

• The headline office vacancy rate in the Perth CBD decreased 0.6 percentage points (pps) to 16.5% in Q4 2025. Similarly, the prime grade vacancy rate fell 0.6 pps to 15.0%, driven by centralisation and expansionary activity by large occupiers (>1,000 sqm).
• Net absorption in Q4 2025 totalled 10,800 sqm; up significantly from the previous quarter’s figure of -84 sqm. On a rolling annual basis, Perth CBD net absorption totalled 19,200 sqm.

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 sqm. 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 sqm p.a., however reflecting year-on-year growth of 1.6%. Average prime net effective rents were also stable at AUD 291 per sqm p.a., with year-on-year growth of 1.7%.
• Perth CBD prime office yields were stable over Q4 2025 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: A limited supply pipeline is expected to support rental growth

• Prime net effective rents in the Perth CBD market are expected to accelerate, with growth forecast to average 6.9% annually over the following five years 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.