Suburban retail high streets in the Western Australian capital are thriving, chalking up their lowest vacancy rates since 2018, according to Ray White research.
RWC director of capital markets Brett Wilkins said it demonstrated robust recovery that was driven by strong economic fundamentals of low unemployment, population growth and consumer confidence.
The research reports that the overall average vacancy rate had dropped from 6.33 per cent last year to 5.32 per cent in 2025.
“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,” Wilkins said.
“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.”
Wilkins identified precincts such as Leederville and Albany Highway, which have developed an identity as destination dining precincts, while Scarborough Beach Road in Mount Hawthorn has established itself as a health and wellness hub.
“We’re seeing a flight to quality as local private investors and owner-occupiers compete for well-tenanted properties,” Wilkins said.
“This is 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.”
Scarborough Beach Road at Mount Hawthorn recorded the lowest vacancy rate of 0.85 per cent, according to the report.
Looking ahead, Wilkins said the future interest rate movements were likely to be the key determinants of continued success for these retail strips over the next year.
“While challenges persist, the resilience and adaptability of Perth’s retail strip market, coupled with the state’s strong economic fundamentals, position it well for continued growth and stability.”
CBRE data for the second quarter of 2025 indicated strong retail sales growth in Western Australia, which has increased 5.9 per cent year-on-year in the three months to May 2025, up from 2.2 per cent in the same period last year.
Muted retail development supply was recorded during the second quarter of this year. Close to 22,000sq m of supply was forecast in 2025, with neighbourhood centres accounting for close to 60 per cent of this.
