Unveiling the Positive Outlook and Growth Potential of Western Australia’s Commercial Property Sector
Valuable insights into the dynamic landscape of the commercial property sector have been provided by the recently released results of the NAB Commercial Property Survey for the first quarter of 2023. The survey indicates several significant trends and developments that illuminate the industry’s current state. Western Australia (WA) stands out as a particularly promising market among the states, with positive outlooks across various indicators.
Commercial Property Index
Although overall sentiment dipped across most states, there is reason to be optimistic, particularly in Western Australia. Confidence levels in WA for the next 12 months showed a strong upward trend with an impressive increase of 11 points. This indicates a growing confidence in the commercial property sector and suggests a positive trajectory for future growth.
Office Market Confidence
Among all the states, Western Australia stands out as the only state with a positive outlook for the office market. Office market confidence in WA soared by 20 points, reflecting a promising environment for commercial property. This is an encouraging sign for investors and businesses considering venturing into the Western Australian office market.
Capital Growth Expectations
Western Australia also excels in terms of capital growth expectations. With growth expectations of 0.3% and 1.2% for the next one and two years, respectively, WA demonstrates a positive outlook that surpasses other states. These figures indicate that the commercial property market in Western Australia has the potential for steady and consistent growth in the coming years.
Rental Growth & Supply
When it comes to rental growth, Western Australia remains strong. Office rents are expected to grow by 2.1% and 2.5% in the next one to two years, outperforming most other states. This suggests that investing in office properties in WA can yield attractive rental returns and potential long-term value appreciation.
Industrial Property Market
The industrial property market in Western Australia also shows tremendous potential for growth. Growth in industrial rents is predicted to be robust, with a projected increase of 3.2% and 2.8% for the next one to two years. This highlights the attractiveness of the industrial sector in WA and presents opportunities for investors looking to capitalise on this market.
You can read NAB’s full report here.
At Burgess Rawson, we take pride in having a dedicated team of property experts in Western Australia with extensive local market knowledge. Our expertise in the Western Australian market allows us to provide valuable insights and guidance to our clients, helping them make informed decisions. We offer a comprehensive suite of real estate services, including sales, leasing, asset management, and project marketing, all tailored to support your commercial property needs.
If you are looking to capitalise on the thriving commercial property market in Western Australia, we invite you to contact us here. At Burgess Rawson, we are committed to assisting you in achieving your commercial property goals.
