PERTH RETAIL STRIPS - OCTOBER 2021

The Perth retail strip market has shown robust levels of rebound in what appears a post COVID-19 economy for the State of Western Australia. Improving economic conditions of the State has had a significant impact on employment and residential house prices which has served to stimulate local retail trade levels across most sectors.

Despite these recent market movements, the prolonged period of stagnation and decline for the residential market has ended, it has been pleasing to see so many regions of Perth rebound with strong levels of median house price improvement, this has helped to grow confidence, couple this with low interest rates has further spurred on increases in retail turnover. Across our five retail strip locations, all have shown sizeable increases in residential house prices notably in Cottesloe which has seen median house price growth of 29.21% to $1.86million, this attractive location has seen a 63.83% increase in house sales with this strong interest also translating to quality retail results with a zero vacancy factor recorded this period.

While COVID-19 has impacted retail at large, we can see most of the retail strips we have surveyed showing signs of rebound and while some locations such as Claremont and Cottesloe continue to feature high levels of clothing and soft goods a sector in decline for most retail destinations, the potential to improve in the food retailing segment for these and other strips continues to be high.