Perth Retail Figures Q2 2024

Key Points:

• WA’s retail sales growth has remained relatively resilient, despite higher interest rates and rising cost of living continuing to pressure consumer spending. WA retail sales grew 3.5% y-o-y in May 2024, being the strongest nationally.
• Limited new retail supply totaling c.8,600sqm was completed during Q224. This related to completion of a large format retail asset on 8 Clayton Street, Midland.
• Vacancy in the Perth CBD improved marginally by 30bp half on half to 25.0% in H124.
• Super prime net face rents in the Perth CBD increased for the second consecutive quarter, recording 2.7% q-o-q and 3.7% y-o-y growth.
•  Shopping centre rents except neighbourhood centres grew during Q224. Regional shopping centre rents increased 1% q-o-q and 2.3% y-o-y.  
• Yields across the CBD increased 25bp q-o-q while they remained stable q-o-q across shopping centres and LFR centres. CBD super prime yields increased 25 bp q-o-q to 5.75%.
•  Retail investment transaction volumes picked up significantly during Q224 driven by sub-regional and neighbourhood shopping centres changing hands during the quarter, including Maddington Central for $107m and Halls Head Central for $68.8m.