New research into Australia’s retail market has revealed Perth is the key beneficiary of the nation’s tightening supply and national rent rises with several global brands looking to expand to Western Australia.
Australian retail vacancy has fallen to its lowest level since 2018, with rents rising 6% nationally over the past year as retailers compete for limited premium space, according to new JLL research.
Several high-end brands are set to call Perth’s Murray Street mall home, with the world’s largest luxury pearl retailer, Paspaley Pearls, granted approval to open its second Perth boutique on Murray Street.
Several high-end retailers have sought leases in Perth’s Murray Street Mall. Picture: JLL
Watches of Switzerland is also relocating and expanding its operations from Raine Square to a new luxury boutique within the precinct.
Additionally, a new high-end fashion retailer is set to open adjacent to Van Cleef & Arpels, which will extend a luxury retail presence further west along the Murray Street Mall.
Christian Dior opened its Murray Street location earlier in 2026, and beauty retailer Mecca is undertaking a significant expansion in Forrest Chase.
JLL retail leasing director Hudson Wheeler said WA’s strengthening economic conditions were increasingly attracting national and international retailers seeking growth opportunities outside the eastern states.
“As the national retail market tightens, retailers are becoming more strategic about where they deploy capital and expand their store networks,” he said.
“Western Australia continues to outperform across consumer spending, employment and population growth, and we’re now seeing that translate into significant retail expansion activity across Perth CBD.
“When you see brands like Paspaley, Watches of Switzerland, Dior and Mecca all expanding within a concentrated timeframe that signals very strong confidence in Perth’s consumer base and long-term economic trajectory.”
WA’s household spending remains robust, with a younger population and higher incomes relative to housing costs. Picture: JLL
WA continues to outperform national consumer spending trends, with household spending growth reaching 7.5% year-on-year in May 2026, compared with the national average of 5.2%, according to ABS figures.
The state’s retail sales grew 4.5% year-on-year from 2023–2024, the strongest growth nationally.
The research also highlighted WA’s younger demographic profile compared with other eastern capitals, supported longer-term retail demand, coupled with strong purchasing power among Perth consumers relative to housing and occupancy costs.
JLL leasing executive Joel Humich said limited retail availability along Murray Street Mall was creating rare opportunities for retailers seeking exposure to Perth’s strongest-performing CBD retail corridor.
“There is currently only one active retail listing on Murray Street Mall, highlighting the lack of available space across the precinct,” he said.
“The tenancy at 239 Murray Street Mall places retailers alongside brands including Apple, Uniqlo, Sephora and lululemon, within one of the city’s fastest-evolving retail corridors.
“Located approximately 50 metres from Perth Underground Train Station, the site includes approximately 261sqm on the ground floor and 180sqm on level one.”
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How WA commercial investors are responding to headwinds
End of financial year research by Ray White Commercial has found WA’s commercial property market experienced a sharp reset in FY26, with total transaction volumes falling 34.4% to $3.19 billion amid higher interest rates, elevated construction costs, and cautious capital re-anchored deal activity across every major sector.
The figures also found headline retail volumes fell 62.1% to $813.4 million, though financial year 2025’s strength was inflated by a few major shopping centre transactions, compared to 2026 where population growth drove steady demand for defensive, supermarket-anchored assets.
Rising interest rates and market headwinds are also leading investors to elongate their due diligence.
Several luxury watchmakers and jewellers have moved into Perth’s main shopping strip. Picture: JLL
“The urgency that characterised the market when rates were falling has given way to a far more considered approach,” RWC WA managing director Stephen Harrison said.
“Buyers aren’t stepping back from the market altogether, they are simply taking longer to satisfy themselves on building condition and covenant strength before committing.”
Industrial kept its position as the state’s most robust asset class, collecting $1.2 billion despite a modest 9.1% dip in volume, according to the RWC WA data.
WA’s industrial sector continues to benefit from a significant yield and pricing arbitrage relative to Sydney and Melbourne, keeping east coast capital actively bidding for Perth logistics and warehouse assets, the research noted.
Commercial yields data over the three months through June 2026 reveal a mixed picture.
Meanwhile, during the three months through June 2026, realcommercial.com.au’s latest commercial yields report found seven out of 10 of the most-enquired industrial properties over Q2 had been in Western Australia.
WA’s industrial yields also compressed sharply to 5%, down 9 basis points over the quarter, and 37 basis points over the past year, reflecting demand in the state’s sector.
Despite the figures, industrial yields were still second highest in Perth compared to the other four major capital cities.
Elsewhere in the WA market, the RWC report found hotel transactions reached $233.9 million, down 17.3% due to a scarcity of available assets rather than weaker demand, and the office market recorded $513.9 million in transactions, down 5% compared to the previous year.