Perth Retail Figures Q2 2025

Key Points: 

• Retail sales growth in WA remains buoyant, increasing by 5.9% y-o-y in the three months ending May 2025, above the 2.2% growth recorded in the same period last year.
• Muted retail development supply was recorded during Q2 25. Close to 22,000 sqm of supply is expected in 2025, with neighbourhood centres accounting for close to 60% of this.
• Super prime CBD incentives have decreased to an average of 20% from 27.5% a year ago, leading to average net effective rent growth of 6.3% q-o-q and 10.3% y-o-y.
• Regional shopping centre net face rents increased 1.2% q-o-q and 4.3% y-o-y to an average of $1,384/sqm. Population growth, tight supply and strong performance in the top tier regional centres is driving growth. 
• Large format retail centre rents continue to grow although at a more moderate pace in Q2 25 given the strong growth seen over the past three years. LFR net face rents increased by 0.6% q-o-q and 7.9% y-o-y to an average of $247/sqm.
• Yields remained stable during Q2 25 and currently average 6.00% for CBD super prime, 6.25% for regional centres, 6.80% for sub regional centres, 6.00% for neighbourhood centres and 6.40% for large format retail centres.
• Having seen a record high $2 billion of retail investment transactions in 2024, H1 25 retail transactions have been more muted, totalling $208 million (for transactions ≥ $5 million).