Perth CBD Office Figures Q4 2024

Key Points:

• Enquiry volumes softened during 4Q24 with c.54,000 sqm of tenant enquiries received for the Perth CBD, down 12% q-o-q and down 2% y-o-y.
• Gross new leasing volumes (for transactions ≥ 500 sqm totalled c.22,000 sqm, an improvement from the c.6,700 sqm recorded in the prior quarter but remained 17% below 4Q23.
• Net absorption of 25,186 sqm recorded during 2H24 (20-year six month average c.10,000 sqm), assisted by Fortescue’s take-up of c.22,000 sqm at 256 St Georges Terrace.  
• Net supply totalled 21,288 sqm, primarily due to the refurbished 256 St Georges Terrace space being added.
• Total vacancy rate decreased to 15.1% from 15.5% at 1H24. Prime vacancy stands at 12.3% and secondary vacancy stands at 20.2%.
• Prime CBD net face rents increased to $707 (+3.3% y-o-y). B grade net face rents increased to $475/sqm (+3.1% y-o-y).
• Muted investment transaction activity in 2024 with the sale of 66 St Georges Terrace being the most notable transaction as Oceania Capital Group acquired the asset from RF CorVal for AUD 75 million during the 4Q24.
• Prime indicative yields were stable q-o-q at an average of 7.27%. Secondary midpoint yields were also stable q-o-q at 8.04%.