2025-09-12-莱坊-Perth_CBD_Office_Market_September_2025页_1mb

Perth CBD Office Market Analysis Summary

Current Market Status

• The Perth CBD office market is stabilising after recent development completions (e.g., 9 The Esplanade) and faces limited new supply in the near term.
• Total vacancy rose to 17.0%, with Prime (15.4%) and Grade A (18.5%) markets experiencing significant vacancy increases. Secondary vacancy at 20.2% saw a slight decrease.
• Prime net face rent reached $729/sqm, up 1.7% quarter-on-quarter and 4.2% year-on-year. Despite supply constraints, Prime effective rent remains near $388/sqm, while yields are relatively flat at 7.58%.
• Market activity shows net absorption of 20,587 sqm ytd, with lower-grade buildings struggling compared to premium options.

Economic Drivers

• Western Australia's economy is heavily dependent on natural resources and driven by global commodity prices (especially China). Growth is cautious, with a projected 3.0%+ annual growth from 2026 to 2029.
• Recent economic volatility has dampened demand, leading to rent moderation and cautious investment.

Key Developments & Supply Pipelines

• Projects like 9 The Esplanade (completed), Lot 4 Elizabeth Quay, and others are set to complete from 2030 onwards. Minimal new supply expected until 2030.

Market Trends

• Flight to Quality: Strong demand for premium Prime and Grade A locations. Prime net absorption is 23,084 sqm over the last six months, while Grade B saw negative absorption.
• Sublet market: Dominated by small briefs (<1000 sqm) but required space for companies relocating to CBD Grade A. West Perth continued to see a rise in vacancy (13.0%), though remains one of the cheaper 'Fringe' markets.
• Prime properties offer better returns, with a prime-secondary yield spread widening to 106bps, reflecting market uncertainty.

Investment & Activity

• Minimal activity in the investment market but three deals under contract and several properties listed as activity gains.
• Prime effective rents are falling due to higher incentives, but Prime yields remain unchanged at 7.58%.

Forecast

• Vacancy rates are expected to fall (aiming towards approximately 10-12% by end-2029) once the economy recovers.
• Prime yields expected to remain flat, particularly in light of the recent market recalibration.
• Net face rents are set to continue increasing, primarily because of higher building costs and limited supply.
• Strong demand remains focused on Grade A Prime, suggesting further strengthening of the market if vacancy falls.

Conclusions

The Perth market is poised for stabilisation and tightening as supply enters its lengthy development cycle. Premium-grade buildings are in high demand despite an overall cooling economy. While economic growth is projected from 2026 onwards, uncertainty persists through 2025. The rise in prime yields and the widening market spread indicate a positive outlook for Prime properties over secondary, underpinned by high tenant demand for quality space.