The Perth Industrial market continues to be challenged by limited demand and high levels of vacancies. This has resulted in industrial face rental levels continuing to reduce, although values show some stabilisation.
The state of the economy continues to correct itself from the high growth pre 2012and we are in for a “much the same” outlook in the near term. Key indicators have all dampened including engineering and commercial construction which has fallen below 2008 levels, house prices and housing finance have both dropped back to 2012 levels, retail turnover is close to stalled, and car sales have dropped dramatically.
Population growth for WA is stagnant, the State’s unemployment rate is the highest in Australia, jobs are being shed and small business confidence has taken a hit. Despite this negative sentiment, owners are showing realism in expectations which has resulted in an improvement in activity levels.