Thinking about a new build, fit out, or renovation? Our local commercial construction market is shifting. Here’s what’s genuinely relevant as you plan your next move:
Cost Environment
Construction costs are now rising at about 3% per year, a major shift from the double-digit spikes of previous years. The WA Government recently invested $37.5 million AUD in workforce development to address skill shortages. Material prices have steadied, and, while unemployment is near 4.1%, skilled labour remains difficult to secure. Bottom line: budgeting is more predictable, but advance planning is still essential.
Major Growth Drivers
Large infrastructure and renewable energy projects are steering much of the current construction activity, especially beyond traditional commercial hotspots. Businesses supporting these projects—or requiring industrial or office space near major infrastructure—will find new opportunities. For example, industrial property prices in Perth grew by 15.1%, and retail transactions rose 27.5% over the most recent survey period. Demand for flexible, adaptable space remains strong
Urban Renewal & Commercial Trends
New office towers, build-to-rent projects, and integrated commercial-residential buildings are reshaping Perth’s CBD. The focus is on sustainable, tech-enabled, and efficient facilities, which set new standards for workspace design in the state.
Worklife Realities
Despite government investment, skilled trades are still in short supply. This can impact lead times and project schedules. Early engagement and realistic timeframes remain essential for any new construction or fit-out.
Takeaway for Business
- Construction costs are stabilising, but timelines still hinge on trade availability.
- Industrial and retail construction activity is up, reflecting a dynamic market.
- Modern office/retail fit outs focus on adaptability and sustainability.
- Plan early, with clear briefs and realistic timing.
If you have a construction, renovation, or fit-out project you’d like to discuss, don’t hesitate to get in touch. Simply reply to this email, fill out the form on our website, or give us a call at 0403 464 064.