The positive movements for the Western Australian economy regarding employment, business investment, exports and commodity prices seen in late 2017 has continued (albeit at a slow rate) into 2018. While these improvements are positive, there are still a number of indicators such as retail trade, wage growth, housing prices which need to improve to be confident in saying “the bad times are behind us”.
WA continues to lose people to the eastern states, although at a lesser rate than two years ago which has slowed population growth. However, improving sentiment which has been heavily driven by increased construction including infrastructure starts may mark an approached return to normality.
Over the last six months there has been a strong improvement recorded in the take up of industrial stock across the Perth market. Ray White Commercial’s analysis of vacant industrial stock has resulted in 985,127sqm, of vacant stock in the sub 5,000sqm size range which is actively being marketed, falling in the sub 1million size range after vacancies of up to 1.1million were recorded in 2017.