ASIA PACIFIC OUTLOOK 2025

PERTH

KEY MESSAGES

Supply

Demand

Rents

Key Outlook

The ongoing Elizabeth Quay development is poised to bolster Perth CBD's reputation as a prime office precinct, with enhanced amenities and transport infrastructure expected to support long-term growth in the office sector. Similarly, the successful urban renewal of the Perth City Link will revitalise the CBD, positioning it as a key market within Australia and the Asia-Pacific region, while contributing to the recovery and long-term stability of the office market.

After the addition of nearly 106,000 sqm of prime office stock in 2023, new supply in 2024 dropped significantly to 66,000 sqm.

After a sharp increase in net absorption to 54,000 sqm in 2023, it slowed significantly to 5,400 sqm in 2024.

Prime Perth CBD office rents continue to trend downward as high vacancy levels and inflation exert upward pressure on face rents.

As the market adjusts to normalisation, demand is

This subdued trend is expected to persist in 2025, with only 33,500 sqm of stock scheduled for completion.

Incentives are expected to remain elevated due to significant supply and modest yet steady demand.

expected to remain modest yet steady over the next five years.

This combination will constrain rent growth in the near term, with only minimal increases anticipated.

With no new supply anticipated beyond 2025 and consistent demand gradually absorbing existing stock, vacancy rates are projected to decline steadily, stabilising around 13% by 2029.

Beyond 2025, the pipeline for new projects is effectively empty, barring the approval of future developments.

Cushman & Wakefield

ASIA PACIFIC OUTLOOK 2025