Perth's industrial property market demonstrated remarkable resilience and growth in 2023, despite navigating challenges like limited land availability, high construction costs and interest rate increases.  

“While construction costs have stabilised, they're unlikely to decrease, setting a firm foundation for future pricing,” says Wayne Chorley, director of industrial sales and leasing at Realmark Commercial. 

“Despite this, WA’s leading population growth is fuelling a surge in demand from investors and tenants for multi-purpose warehouses and well-placed distribution centres, driven by the growth of the WA economy. 

“This limited supply, coupled with high demand, is set to further escalate rental prices in 2024.”  

By October 2023, new market supply had reached 95,600 square metres, with projections to reach 196,400 square metres by the end of the year, significantly surpassing the ten-year average of 111,000 square metres.  

Despite this substantial increase in supply, high pre-commitment rates, prompted by low market vacancy and a highly competitive pre-lease market, have positioned Perth’s industrial market among Australia's tightest. 

Undeterred by these tight conditions and experiencing 13 interest rate rises, businesses in WA have continued to expand, supported by the region's leading population growth and the strength of WA's resource industry.  

This ongoing expansion and strength in the region has captured the attention of investors, who see the Perth industrial market as an area ripe for investment and growth 

“In the eyes of investors and owner-occupiers, Perth's industrial market remains undervalued,” said Mr Chorley. 

“We're witnessing strong interest from both local and Eastern States investors, driving the market's growth. 

“This trend, alongside the market's strong performance and positive outlook, sets the stage for Perth’s industrial property sector for sustained growth and investment opportunities into 2024.” 

For tailored insights and advice, please feel free to reach out to Mr Chorley by contacting him at 0423 252 253.