Last month REIWA released their quarterly Perth commercial property market report that revealed the sales statistics of all the commercial properties sold in Perth during the 12 months to September 2019.
We’ve focused on the commercial report on office sales in Perth to analyse what the commercial property market has done in the 12 month period and what you might expect for commercial property sales for 2020.
Perth Commercial Property Sales
Perth office sales in the September quarter increased by 8.5% from last year to record 255 office sales. In comparison, showrooms had a 30.9% growth in sales and warehouses for sale continued to feel the effects of the WA’s flat market with a 12.9% decrease in sales.
Perth Office Sales
Compared to the 12 months to September 2018, the September 2019 report showed an 8.5% increase in Perth office sales, but a 24% decrease from 5 years ago.
Perth Office Sales by Region
When we looked at where the office sales were coming from in Perth, there was no surprise that inner Perth had the highest number of offices sales with 132 in the September quarter.
Following that there were two standout regions: South West – 42 sales and South East – 39 sales.
The majority of Perth had fewer office sales than the September quarter in previous years, with the only improvement in Perth Inner and Perth’s North East.
Of the areas with over 20 office sales per quarter, Perth’s South East has had the most consistent level of sales for the past 5 years. The area has maintained around 40 sales per quarter for the last 5 years, apart from a standout quarter in 2016.
What are Perth Offices Costing per Square Metre?
Of Perth’s office sale regions, Perth’s North West overtook Perth Inner as the highest priced per square metre for the first time at $4,741 per square metre – increasing by 17.2% from last year.
Inner Perth continued to be highly priced per square metre at $4,430, decreasing by 25.1% in the last 5 years, but closely followed by Perth’s South West at $4,400sqm which had increased by 15.5% in the last 5 years.
Perth’s South East is the lowest priced region in the metro area, at $3,852 per square metre, and has been for three years in a row.
When we looked at the historical data for cost per square metre, we could see that most Perth areas are still recovering from price highs from 2015, with only South West and Mandurah achieving higher prices per square metre than 2015.
|Change from 2015||Change from 2018||Avg in 2019|
|Perth – Inner||-25.1%||-9.3%||$4,430|
|Perth – North East||-14.2%||+11.7%||$4,052|
|Perth – North West||-1.2%||+17.2%||$4,741|
|Perth – South East||-13.3%||+8.4%||$3,852|
|Perth – South West||+15.5%||+13.1%||$4,400|
Top 5 Suburbs in Perth for Offices for Sale
Four suburbs in Perth’s Inner topped the list of highest selling for office properties, accounting for 36% of all Perth’s office sales. Como has 9 office sales and accounted for 21% of office sales in the South West region.
|Sales||Per cent of total sales|
Summary of Perth Office Sales by Region
If you’re looking to invest in buying an office in Perth for 2020, here are our top takeaways from September 2019’s quarterly report on commercial property:
- If you’re looking for short term consistency in pricing, Perth’s South East regions in areas like Belmont, Cannington, Victoria Park and Burswood.
- Perth’s Inner region of suburbs like Perth CBD, East Perth, Subiaco and West Perth have averaged the highest price per square metre for the last 5 years but have also declined the most in 5 years.
- The most affordable Perth regions to buy an office are Perth’s South East and Mandurah, with the lowest cost per square metre.
For a detailed breakdown of the Perth commercial real estate market or specific advice on offices for sale in Perth, call or email Ross Scarfone Real Estate. Our agents specialise in office, industrial and commercial real estate in Perth’s south-east corridor including Belmont, Welshpool, Kewdale, Victoria Park and surrounding areas.