A paucity of high-quality new supply expected within Perth’s retail space over the next few years is expected to positively impact medium term rental growth.

At least that’s the conclusion from CBRE’s latest WA Retail Market Overview which expects only 43,000sqm of new retail space to be delivered within the state’s capital between now and 2026, which is less than half the 10-year average.

Historically the Perth market has delivered an average 116,000sqm of new supply over a three-year period.

CBRE Research Analyst Cameron Douglas-Perrine expects limited future options for occupiers wanting high-quality new supply to swing the pendulum in negotiating stakes squarely in favour of landlords.

“We expect this to have a positive impact on rental growth in the medium term as landlords gain bargaining power in the under-supplied market,” said Douglas-Perrine.

Adding to the upward pressure on WA’s short and long-term retail demand, the report notes, is strong (13%) population growth over the next decade, driven by both international and interstate migration – underpinned by the strength of the state’s mining sector and the labour market.

The report highlights institutions as the most active purchasers of shopping centres in WA, accounting for 64% of deal activity in the past three and a half years, compared to private owners (32%) and family office/trusts (5%).

Neighbourhood shopping centres have been the most actively traded, followed by sub-regional shopping centres, with only one CBD asset traded.

This has been highlighted by the recent acquisitions of Busselton Boulevard Shopping Centre and Margaret River Shopping Centre by Centuria Capital Group for a combined sale price of $31 million.