WA household spending continues to trend upwards

• WA household spending growth reached 7.7% year-on-year in November 2025, up from 7.1% recorded in the three months prior. Spending in the miscellaneous goods and services category recorded the strongest growth (11.3% year-on-year).
• New food and beverage operators have continued to open across neighbourhood centres, despite continued slow general enquiry levels. Fashion retailers are also expanding, particularly securing space in regional centres.

Two major developments completed over the quarter

• Two major completions were recorded over Q4 2025, totalling 10,300 sqm. Over the past 12 months, completions totalled 17,100 sqm across three projects; significantly below the 10-year annual average of 60,300 sqm.
• There are currently seven major developments under construction, forecast to add 53,800 sqm by Q4 2026. In addition to projects already under construction, there are 22 projects with plans approved totalling 222,700 sqm.

Investment volumes softened over Q4 2025

• Marginal growth in average rents was recorded across all sub-sectors during Q4 2025. Despite only marginal increases, an upward trend in rental growth has been evident across most sub-sectors over the past four years.
• Investment volumes continued to soften, with ten major transactions recorded over Q4 2025 totalling AUD 125.3 million. The largest transaction of the quarter was the sale of Victoria Park Central from Vicinity Centres to an undisclosed buyer for AUD 30.0 million.

Outlook: Rental growth expected to accelerate over the medium term

• Provided WA household spending continues to trend positively, and the current low incoming supply landscape persists, rents across all sub-sectors are forecast to increase by an annual average of 2.0% to 2.9% over the next five years.
• Strong investment fundamentals in the Perth market are expected to sustain, particularly for non-discretionary retail assets, despite potential interest rate hikes.