Perth’s industrial market continues to go from strength to strength, with ongoing growth in land values and rents, according to the latest research from Knight Frank.

The research found land values continue to soar, up by 13% over the past 12 months for small sized lots of under 5000sq m and 16.4% for medium sized lots of 1-5 hectares. This shows an acceleration on the 11% and 12.9% for smaller and medium lots respectively over the 12 months to the end of June.

In dollar terms, small sized lot values have risen by $17/sq m over Q3 to $541/sq m, while medium sized lots have risen by $16/sq m to $414/sq m.

When it comes to rental growth, prime net face rents have risen by $10/sq m over the year to date to currently sit at $146/sq m on average.

The Outer South has seen the strongest rental growth of any industrial precinct in Perth over the past 12 months at 11%, up from 8% at the end of Q2.

There were 23 industrial warehouse transactions in Perth up to the end of Q3 this year totalling $278 million, and to date there have been 25 totalling $299 million, almost doubling the $160 million that sold over 2023 across 18 transactions, demonstrating the continued popularity of the sector in more uncertain times.

Knight Frank Head of Industrial Logistics WA Geoff Thomson said the industrial market in Perth continued to be solid, with growing momentum.

“Western Australia has recently been named as having Australia’s best-performing economy, and this has a flow on to business, employment and the industrial sector,” he said.

“While we have seen some caution arising from economic conditions, this will give businesses more impetus in our state to make decisions to lease and buy space.

“We expect activity to strengthen further moving forward, along with land values and rents.”  

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