In contrast to the Perth CBD, West Perth has yet to respond to changes in the economy. Its office market is characterised by static supply, falling demand and an increasing vacancy rate.
The Perth CBD market is showing signs of continuing, but slow, recovery, with falling vacancy rates and positive demand. It is generally expected that incentives will start to fall but will remain higher than average while vacancy rates remain high which should have the effect of increasing effective rents.
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.
The Perth inner city and near city suburbs apartment markets have been transformed over the last decade with significant levels of new supply adding to dwelling stock. There is now a growing acceptance of apartment living in the community.
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.
Perth’s CBD office market is showing signs of recovery after more than five years of economic downturn and large increases in supply resulting in high office vacancy rates, high incentives and a drop of more than 50% in effective rents.
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.
Gordon Jeanes, a valuer and director with Property Valuation & Advisory (WA), has retired, effective 31 December 2017.
Gordon has worked in the property industry for more than 30 years as a valuer and a property consultant. During that time he gained experience across a variety of market sectors, specialising in many markets.