Perth Office Market Dynamics Q2 2026

• Headline vacancy rate on downward trend.
• Limited supply pipeline in the Perth CBD market.
• Marginal increases to face rental growth over the quarter.

The headline office vacancy rate in the Perth CBD decreased 0.3 percentage points (pps) to 16.0% in Q2 2026. Similarly, the prime grade vacancy rate declined 0.1 pps to 14.6%, driven by centralisation activity by large occupiers (>1,000 sq.m.). Net absorption in Q2 2026 totalled 4,900 sq.m.; up from 1,300 sq.m. recorded in the previous quarter. On a rolling annual basis, Perth CBD net absorption totalled 16,900 sq.m.

There are no projects currently under construction in the Perth CBD, with new office supply additions expected to remain low in the short to medium term. There are 11 projects in the Perth CBD with plans approved, totalling 300,500 sq.m. However, proposed new office projects are likely to require substantial pre-commitment to proceed.

Average prime net face rents increased over the quarter, up 0.4% to AUD 677 per sq.m. p.a., reflecting year-on-year growth of 1.7%. Average prime net effective rents decreased 0.2% to AUD 297 per sq.m. p.a., with year-on-year growth of 3.3%. Perth CBD prime office yields softened 25 basis points (bps) over Q2 2026 to a midpoint of 7.63%, while secondary yields were stable at a midpoint of 9.00%. Prime office yields also softened 25 bps on an annual basis.

Prime net effective rents in the Perth CBD market are expected to accelerate over the medium term due to a limited supply pipeline. Investment volumes may remain soft over the near term as investors are likely to still be selective in terms of potential acquisitions due to broader economic instability and potential further interest rate hikes.