Western Australia (WA) presents a compelling paradox, with strong local economic fundamentals providing stability amid broader global market uncertainty. While global market volatility has created a more cautious environment, WA’s economy continues to demonstrate resilience underpinned by robust population and employment growth, alongside improving consumer confidence and household spending. Looking ahead, the next phase of economic growth will be defined by capturing opportunities in emerging sectors including defence, critical minerals, and value-add processing, which will be crucial to offset moderating demand for traditional resources.

In the investment market, this economic outperformance is sharpening the focus on relative value. Perth stands out in this environment, offering investors a strategic opportunity to capitalise on a higher yield profile. This yield advantage doesn't come at the expense of performance, with capital value growth forecast to remain broadly in line with other major Australian markets, presenting a compelling investment case.

Robust occupier demand across the office, industrial, and retail sectors, coupled with constrained supply pipelines has created a supply-demand imbalance in the market. As a result, vacancy rates have tightened while rental growth has accelerated, enhancing the value proposition for existing assets.