Real estate consultancy firm boss Jeremy Robotham says greater population growth could translate into a significant boost for the state's commercial property sector.
Real estate consultancy firm Knight Frank Australia’s boss Jeremy Robotham says greater population growth could translate into a significant boost for the state's commercial property sector.
Mr Robotham said the commercial real estate market was performing well but future population growth in the state would further strengthen the sector.
He said if housing affordability and employment opportunities were able to attract more people to the state, then the market would receive a significant stimulus.
WA currently has a population of about 2.8 million people, according to the latest Australian Bureau of Statistics data.
The state recorded the highest population growth rate of 2.3 per cent compared to the other states and territories, comparing December 2021 to 2022.
“Given employment opportunities are both plentiful and varied, if these two factors can be translated into consistent population growth, all of the commercial property sectors in Perth should also see sound and sustainable growth in performance,” Mr Robotham said.
“The resources sector is performing very well, as are the international education and tourism sectors, along with agriculture, so most economic cylinders are firing.
“However, the scarce labour market is one factor holding Western Australia back from reaching its full potential growth-wise.
“Once the population in Western Australia starts to really grow, each of the real estate sectors will strengthen further.”
Mr Robotham said the industrial sector was the current standout in Perth while the office leasing market was showing ongoing signs of improvement.
Knight Frank’s latest industrial review report shows that industrial prime net face rents in Perth had grown to $136 per square metre.
“Effective rental growth along with net absorption will continue to be positive, but the rate of growth will be dictated by white collar employment growth,” Mr Robotham said.
The firm’s WA team was preparing to expand its operations in line with the expected growth in the local market, according to Mr Robotham.
“In the very near term we are looking to grow our industrial and valuation teams, and over the course of the next six to 12 months we will also be looking to expand our capital markets team and our asset management services business,” he said.
