The Perth retail property market is performing well despite the overall uncertainty across the Western Australian economy. During this time of low interest rates there are many investors (most notably on the East Coast) looking for a secure property holding with sound returns, which has impacted the yields downward.
Overall however, unemployment remains high, GSP levels are showing little positive growth together with the residential market showing limited improvement yet retail trade results are stable. Food retailing is the major contributor to this retail turnover and this has translated well across major retail strip locations across Perth. While shoppers now prefer shopping centre retailing there is a strong segment of the market which enjoy high street shopping particularly where parking and amenity are high. Specialty food retailing and cafés & restaurants are one of the segments of the market which show the best results with “foodie” strips doing well in regard to occupancy, rents achieved and investment yield results. Other market segments such as clothing and soft goods and household goods are more aligned to shopping centres or bulky goods outlets and have reduced their footprint in these strip locations.