Perth Retail Figures Q3 2024

Key Points: 

• WA’s retail sales growth has accelerated in the past three months, despite higher interest rates and rising cost of living continuing to pressure consumer spending. WA retail sales grew 4.5% y-o-y in August 2024, the strongest nationally.
• No new retail development supply (for stock ≥ 3,000 sqm) was recorded during Q3 24.
• Vacancy in the Perth CBD improved marginally by 30bp half on half to 25.0% in H1 24.
• Super prime net face rents in the Perth CBD remained stable q-o-q and increased 3.7% y-o-y.
• Regional shopping centre net face rents increased 0.9% q-o-q and 2.8% y-o-y. Large format retail centres recorded the strongest face rent growth increasing by 5.5% q-o-q and 8.9% y-o-y.  
• Yields across all CBD retail grades expanded by 25bp q-o-q with super prime CBD now at 6.0%. Regional shopping centre yields expanded by 27bp q-o-q to an average of 6.27%. 
• Retail investment transaction volumes in WA have been super strong with overall 2024 volumes as of Q3 ‘24 reaching a decade high of c.$1.3 billion. Retail transaction volumes have been driven by the sale of regional centres during the quarter.