Tag: Property Report

Perth Commercial Property Outlook 2021

Perth Commercial Property Report for 2021

There’s no doubt that the uncertainty of 2020 left its mark on the commercial property market across the country. We were lucky here in Perth, where the health effects of the pandemic were barely a blip and hard borders kept our state’s economy ticking over. And while our minimal lockdowns affected retail strips, commercial and industrial businesses were often considered essential and able to keep operating.

While some Australian cities saw industrial and commercial real estate transactions drop during the COVID-19 period, Perth’s were up 10.70 per cent, with $828.69 million in industrial property transactions.

All this leads to good news for the Perth commercial property market.

With the rest of Australia now recovering well from the COVID recession, interest rates low, and both state and federal governments investing in stimulus packages, it’s a perfect time to look into the future with our 2021 commercial real estate report 2021.  Here are our 5 big takeaways for this post-pandemic year.

Commercial Real Estate Prices 2021

While 2020 saw small drops in median prices across much of Perth, things are stabilising. Thanks to a long period of low-interest rates, there’s no shortage of money. And as far as investors are concerned, commercial property offers secure long-term income with better yields than bonds. This means we are seeing a lot of investment interest in commercial property and values are holding steady. We expect them to remain stable in the near future, and start increasing over the next 12 months as stock levels are low and the demand remains strong.

Commercial Property Vacancy Rates in 2021

The vacancy rate for commercial and industrial real estate in Perth is low. And with strong demand and low stock, it will decrease even more.


For investors, this means more security and better yields because you are less likely to face lengthy periods with no tenant. And if you can get a new tenant quickly, you will be getting the return on your investment, rather than paying interest on a loan for which you are getting no income. As far as rental returns go, rents have been stable for a while, and we don’t expect big rent hikes. However, low interest rates mean more rent in your pocket, not the banks.

Commercial Real Estate Demand in 2021

We’re seeing strong demand for commercial and industrial real estate in Perth. And stock levels are dropping. We’ve recently received multiple offers on a single property more than once. Strong demand and limited supply tend to lead to price increases over time. This makes commercial and industrial real estate a sound investment option.

Sellers’ Market

For the past few years, the Perth commercial property market has been a buyers’ market. We are at an interesting stage now where we are seeing good demand from buyers and stock levels reducing. We’re watching the market shift to a sellers’ market. But what does this mean in practice?

In a buyers’ market, there are more commercial and industrial properties on the market than there are buyers for those properties. This puts downward pressure on prices to shift stock that may otherwise stay on the market for a while. Although a buyers’ market makes commercial property more affordable, it may also indicate lower growth over the short term. Unless the market improves – which is what is happening in Perth right now.

When there is more demand than supply, properties sell more quickly and at a good price. There is less likely to be negotiating on prices because sellers have the power.

Properties may also sell the list price as buyers compete with each other to secure an investment property.

Perth is currently in that sweet spot between buyers’ and sellers’ market – the perfect time to invest.

It’s also not uncommon for properties to sell above their list price in a seller’s market as buyers compete for the hottest commodities.

Hot Commercial Real Estate Suburbs in 2021

When you think about where to buy your next investment property, you want to have a look at the supply and demand of property in the suburb or area you’re interested in. As specialists in outer-suburban commercial and industrial real estate in Perth’s South East, we get a good idea of the hot suburbs to invest in. We continue to see good demand for the industrial properties both in Welshpool and Kewdale, as well as for smaller properties in surrounding suburbs such as Carlisle, East Victoria Park and Cannington. These suburbs are all easily accessible to Perth airport, freight rail line and major freeways.

Great time to invest in an industrial property 

As you can see from our predictions above, 2021 is shaping up to be an ideal time to invest in Perth industrial and commercial properties. If you are thinking about a warehouse, in particular, there are a couple of facts you should know:

  • According to the latest report from the Real Estate Institute of WA, the most affordable Perth regions to buy a warehouse are Perth’s North East and South East, with the lowest cost per square metre.
  • The South East accounted for 20 per cent of total warehouse sales across Perth in 2020.

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 southeast corridor including BelmontWelshpoolKewdaleVictoria Park and surrounding areas.

We would love to help you build your portfolio, contact us today.

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Perth’s 2020 Commercial Property Report: Office

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.

perth-office-for-sale-by-year

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 2015Change from 2018Avg 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
Mandurah+15.8%-38.6%$2,479
Greater Perth-17.7%-1.5%$4,195
Cost per Square Metre

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.

 SalesPer cent of total sales
East Perth3815%
Perth218%
Subiaco208%
West Perth145%
Como94%
Top Suburbs for Office Sales in Perth

Summary of Perth Office Sales by Region

perth-office-for-sale-by-perth-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.

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Perth’s 2020 Commercial Property Report: Warehouse

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.

Perth Commercial Property Sales

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.

Perth Warehouse Sales

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.

Perth Warehouse Sales by Region

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.

warehouse-for-sale-perth-by-region-2020

What are Perth Warehouses Costing per Square Metre?

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.

 Change from 2015Change from 2018Avg in 2019
Perth – Inner+9.4%+20.9%$4,969
Perth – North East-20.4%-7.4%$1,638
Perth – North West-11.6%-3.0%$1,822
Perth – South East-11.4%+1.9%$1,792
Perth – South West+0.5%+2.0%$1,792
Mandurah-14.6%+72.1%$1,914
Greater Perth-9.7%+0.1%$1,835
Cost per Square Metre

Top 5 Suburbs in Perth for Warehouses for Sale

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.

 SalesPer cent of total sales
Wangara2812%
Malaga229%
O’Connor219%
Canning Vale219%
Forrestdale146%

Summary of Perth Warehouse Sales by Region

perth-warehouse-sales-by-region

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:

  • Warehouses in Perth’s inner continued to increase their value during a tumultuous 5 years of Perth’s commercial property market, increasing cost per square meter by 9.4% compared to the average Perth decline of 9.7%.
  • The South East is showing the strongest signs of recovering from Perth’s slow market by selling the greatest number of warehouses since 2011.
  • The most affordable Perth regions to buy a warehouse are Perth’s North East and South East, with the lowest cost per square metre.

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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