Perth shopping centres see rising rents amidst 1.8% vacancy rate

CBD enters “Rents Rising” phase whilst regional centres maintain constrained availability.

The retail market in Perth, Australia, recorded rising rents in the fourth quarter (Q4) of 2025 as strong household spending and limited new supply tightened conditions across shopping centres.

According to a report by JLL, the city’s central business district remained in the “Rents Rising” phase of the rental cycle, whilst regional shopping centres maintained a low vacancy rate of 1.8%.

Average rents increased across all retail sub-sectors during the quarter, with regional centre gross rents reaching $1,295 (AU$1,799) per square metre (sqm) per annum, up 0.8% year on year (YoY).

The rental growth comes as Western Australia posted 7.7% YoY household spending growth in November 2025, led by miscellaneous goods and services at 11.3%.

Food and beverage operators continued opening in neighbourhood centres despite slower enquiry levels, whilst fashion retailers expanded into regional centres.

Supply also remained constrained during the year, JLL noted.

Two major developments totalling 10,300 sqm were completed in Q4 2025, bringing total 2025 completions to 17,100 sqm, which is below the 10-year annual average of 60,300 sqm.

The future pipeline includes seven projects under construction expected to add 53,800 sqm by Q4 2026, alongside 22 approved developments totalling 222,700 sqm.

Investment activity softened during the quarter, with 10 major transactions worth $90.1m (AU$125.3m), with the largest deal being Victoria Park Central for $21.6m (AU$30.0m).

Rents across all retail sub-sectors are forecast to rise by an annual average of 2.0% to 2.9% over the next five years if spending remains positive and supply stays limited, JLL said.

(US$1 = AU$1.39)