Vacancy rates across Perth’s retail strips have fallen – bucking the national trend – as a favourable economic climate across WA
Ray White Commercial WA’s latest market report The Insight: Perth Retail Strips, revealed a significant turnaround in the city’s retail landscape, with the average vacancy rate across eight key strips falling to its lowest point since 2018.
This positive trend is a direct result of a favourable economic climate, characterised by low unemployment, sustained population growth, and a flourishing residential property, according to director of capital markets Brett Wilkins
“The survey of 581 tenancies across key locations reveals a dynamic shift in the retail mix, with a notable move away from traditional retail categories toward experiential and service-based offerings,” Brett Wilkins said.
While strips like Albany Highway and Leederville have solidified their reputations as dining destinations with a high concentration of cafes, restaurants, and specialised food retailers, other strips have maintained their unique character.
Bay View Terrace in Claremont and Napoleon Street in Cottesloe continue to buck national trends, remaining strongholds for high-street fashion and lifestyle retail, a testament to their affluent local catchments.
Meanwhile, Scarborough Beach Road in Mount Hawthorn has firmly established itself as a services hub, with an impressive 36.86 per cent of its tenancies dedicated to health, beauty, and wellness services.
Brett Wilkins, who has been analysing Perth’s retail strips for nine years, commented on the findings.
“This report highlights the resilience and adaptability of Perth’s suburban retail precincts. The improvements in vacancy rates are not just about a strong economy; they are a reflection of savvy business owners and landlords pivoting to meet consumer demand for unique, in-person experiences and essential services,” he said.
“We’re seeing a flight to quality as local private investors and owner-occupiers compete for well-tenanted properties, reinforcing the long-term value of these locations. While challenges like inflation persist, the data points to a very healthy and stable market with a bright outlook.”
