The supply picture
New office supply in Perth has fallen sharply — approvals are easing (-17% year-on-year). A shrinking pipeline puts a floor under well-located, well-let stock even where headline vacancy looks high: little new product is coming to compete.
Precinct by precinct
Across 97 Perth office precincts, the current tilt is 33 tightening · 16 demand-led · 27 quiet · 21 oversupply risk (median supply change -29% year-on-year). This is a stock-picker's market: the pressure is uneven, not uniform.
Tightening / demand-led: Kings Park (WA), Floreat, Perth (West) - Northbridge, Claremont (WA)
Watch (oversupply risk): Thornlie, Armadale - Wungong - Brookdale, Maddington - Orange Grove - Martin, Malaga
The sector backdrop
Valuations lag rates — capital softening still to come; income cushions it. Office cap rates sit around 6.32% on our national read. Conditions are neutral / transitional on our macro read.
Cap rate = the yearly income as a share of price (a higher number is cheaper). The number above is a market read; where our model puts fair value, and the five-year return forecast, are in the report.
The full Perth office read
Fair-value cap rate, the five-year total-return forecast and the downside range — plus the precinct data in full — sit in the Perth Office report, refreshed every edition.
See the report →Source: ABS building approvals (supply), MPLC precinct model to SA2 (demand tilt), RBA (rates, yields) and the MPLC valuation model. As at September 2026. Information & forecasts only — not advice.