Western Australia has faced particular challenges in the tourism and tourism accommodation sectors since the downturn in its economy in response to a softening in the resources sector. However, the latest data to be published by Tourism WA shows encouraging signs for the tourism sector, particularly in the domestic market.

After a difficult few years, the Perth CBD market is showing signs of recovery, with falling vacancy rates and positive demand. With very little new stock in the pipeline over the next few years it is anticipated that vacancy rates will fall further and that effective rents will start to increase.

While the housing market remains subdued, there are some glimmers of light in the broader economy, and also signs of improvements in the rental market. Sentiment in the residential property market has improved, but is still negative.