According to a recent publication by Ray White, the future of Perth’s economy is bright.
After what has been a turbulent time in WA business and real estate, especially with the increase of online shopping affecting smaller retail businesses, the future is looking up!
See below for a brief introduction to the insightful publication, which our very own Murray Brown found incredibly interesting.
The Perth retail market has been under increased pressure just like all retail markets across the country. Over the past few years there have been a strong reduction in retail trade growth results most notably for discretional goods retailing which have been exacerbated by the fundamental poor economic condition across the state. Encouragingly has been an improvement in employment locally which has translated into some further increases in GSP highlighting upward growth in economic fundamentals for WA. All economic forecasts are for WA to once again become the economic powerhouse of Australia soon.
The proliferation of online shopping has been a driving force towards the demise of many retailers over the last 10 years, emergence of groups like Amazon into Australia now 12 months ago have put further pressure on competition for goods which has resulted in a change in retailing. A greater emphasis on experience-based retailing has been key, providing greater entertainment, activity and education in store to attract customers.
Also considering savings levels are increasing and discretionary spending is falling, the move to more convenience-based retailing around food has been key for the success of many centres and retail strips. Parking continues to be of growing importance particularly for retail strips who rely heavily on providing easy and free access for customers. Looking ahead, the retail mix will be key to attract and retain tenants however rents will need to remain competitive to keep strips vibrant.
The article continues to provide specific comparisons in retail vacancy rates from 2017 to 2018 in the following suburbs: Claremont, Cottesloe, Subiaco, Leederville and Mt Lawley-Highgate. Interestingly, Claremont and Cottesloe aren’t doing too badly in comparison, with decreases in retail vacancy noted across the 2-year period, whereas the latter three suburbs have seen an increase, specifically Subiaco.
To read more of the article above, click here.