Western Australia continues to present one of the most compelling real estate investment opportunities in Australia.
Realside’s conviction in WA is grounded in direct experience and sustained economic outperformance. Across the key drivers of real estate demand — population growth, employment and household spending — WA has consistently ranked at or near the top nationally. These are not short‑term cyclical effects, but enduring fundamentals that support long‑term occupier demand and income growth.
A Market Supported by Sustained Economic Strength
Recent data referenced in our Malaga Retail Fund webinar reinforces WA’s position as the leading state across several core economic measures, including household spending, employment growth and population growth.
At a city level, Perth’s performance is equally compelling. On a global comparison, Perth ranks strongly across real GDP growth, employment growth, population growth and household disposable income. In several measures, Perth outperforms not only other Australian capital cities, but a range of global peers.
Despite this, Perth remains under‑represented in many Australian real estate portfolios. This disconnect between economic performance and investor allocation continues to create opportunity for disciplined capital.
Population Growth and Infrastructure Investment
Population growth remains a central driver of demand across WA. Growth across key metropolitan catchments continues to exceed the national average, supporting household formation and resilient retail spend.
This demographic tailwind is being reinforced by substantial government‑led infrastructure investment, including major transport upgrades and the continued expansion of the Metronet network. These investments are improving connectivity, enabling higher residential density and reshaping established precincts.
As these areas evolve, they support stronger and more active catchments — a critical factor in sustaining long‑term demand for well‑located real estate assets.
Retail Conditions Remain Favourable
The WA retail sector is benefiting from a favourable supply‑demand dynamic.
Household spending continues to outperform the national average, supporting tenant demand and rental growth. At the same time, new supply remains constrained. Elevated construction costs and feasibility pressures have limited the delivery of new retail developments, despite existing planning approvals.
This imbalance is supporting improving rental conditions across the sector. Large format retail has been a standout, demonstrating resilience and consistent growth, underpinned by population growth and ongoing demand for essential household goods and services.
Relative Value Remains a Key Advantage
One of the most compelling aspects of the WA market is the relative value available. Compared to other major markets, investors can access assets on attractive metrics relative to comparable transactions, rental levels and replacement cost.
In some cases, assets are being acquired below replacement cost, with meaningful underlying land value. This provides downside protection alongside multiple avenues for value creation, including rental growth, active asset management and future repositioning.
Strategy in Practice
Realside’s Malaga Retail Fund is an example of how WA’s broader fundamentals translate into a specific investment opportunity.
Located approximately 15 kilometres from the Perth CBD, the asset benefits from strong connectivity, high exposure and proximity to major infrastructure investment, including transport upgrades and emerging development precincts. It sits within a growing catchment characterised by population growth, increasing density and resilient household spending.
Importantly, the asset reflects the relative value available in the WA market — acquired below replacement cost, supported by significant underlying land value, and offering clear potential for rental growth. Malaga is consistent with Realside’s broader strategy of targeting assets where strong fundamentals, infrastructure investment and pricing align.
Diversification Benefits
More broadly, WA provides a compelling diversification opportunity. For investors heavily weighted towards the eastern seaboard, the state offers exposure to a different economic cycle and growth profile, while still delivering the scale, liquidity and institutional depth of a major Australian market.
