Perth's CBD office market has recorded its eighth consecutive quarter of rental growth and, according to CBRE, is now second to Beijing in terms of strong A-grade office rental growth in the region.
CBRE's latest national office MarketView report shows Perth recorded a prime net face rental growth of 12.9 per cent in the third quarter, compared with the same quarter last year - making it Australia's strongest office market.
Perth's rental growth is expected to fall to 8 per cent in June next year, still almost triple the growth of the next city, Sydney, at 3 per cent.
Stephen McNabb, CBRE's head of research, said unprecedented investment spending in the resources sector generated demand for office space, resulting in record levels of net absorption.
Perth's CBD vacancy was 4.2 per cent in July while Sydney's vacancy was 8.2 per cent and Melbourne's was 5.6 per cent.
Andrew Denny, CBRE senior director, office services, said WA's strong economy would ensure Perth's office market remained relatively resilient.
"We expect WA to continue to outperform in the short to medium term," Mr Denny said. "The oil and gas sector is still a significant driver."
On the investment front, CBRE's report indicates a split market, with a small number of high-grade assets changing hands.
Solid levels of activity have been recorded in the CBD in the year to September, with seven major sales and $371.25 million of investment.There have been a small number of big transactions and a larger number of sub-$50 million transactions. CBRE is forecasting a period of modest yield growth in the medium-term.
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