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 warehouse sales in Perth to analyse what the industrial property market has done in the 12 month period and what you might expect for commercial property sales for 2020.
While certain Perth commercial property types had an increase sales in the year to the September 2019 quarter, showrooms had a 30.9% growth in demand and offices an 8.5% growth, warehouses for sale continued to feel the effects of the WA’s flat market.
Compared to the 12 months to September 2018, the September 2019 report showed a 12.9% decrease in warehouse sales and a 14% decrease from 5 years ago.
When we looked at where the warehouse sales were coming from in Perth, there were three standout regions: North West – 60 sales, South West – 69 sales and South East – 67 sales.
What’s even more interesting is that both the South East and South West regions outperformed the previous year’s warehouse sales. Where the rest of Perth saw fewer warehouse sales than the previous year.
The South East Perth region was the only area to record higher warehouse sales than 2017, and in fact recorded its highest warehouse sales since 2011, showing promising signs for the area that includes Belmont, Welshpool, Kewdale and Victoria Park.
Of Perth’s warehouse sale regions, Inner Perth continues to be the highest cost per square metre at $4,969, growing 9.4% in the last 5 years.
When we looked at the historical data for cost per square metre, we could see that two areas retuned to the higher prices that were seen in 2015, while the remainder continued to see the effects of the slow Perth market.
Two of Perth’s North East suburbs topped the list for most warehouses sold in Perth, Wangara and Malaga, contributing 72% of warehouse sales for Perth’s North East region. With North West suburb O’Connor recording 21 warehouse sales, and South East suburbs Canning Vale and Forrestdale combining for 35 warehouse sales.
If you’re looking for to invest in buying a warehouse in Perth for 2020, here are our top takeaways from September 2019’s quarterly report on commercial property:
For a detailed breakdown of the Perth commercial real estate market or specific advice on warehouses for sale in Perth, call or email Ross Scarfone Real Estate. Our agents specialise in industrial and commercial real estate in Perth’s south-east corridor including Belmont, Welshpool, Kewdale, Victoria Park and surrounding areas.
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