Being a market that is driven primarily by the resource sector, Perth often confounds investors by its sharp and sudden movements – both up and down. After the biggest mining and economic boom in recent history came to an end in 2013, Perth and its office market found itself quite suddenly a market in distress: contractions across most sectors of white collar employment led to soaring vacancy, plummeting rents and record high levels of incentives on offer, as landlords attempted to lure tenants from an ever-decreasing pool.
But things have started to move again.
The lights have turned back on in the resource sector, the engine house of the economy. Consumer and business sentiment is up, companies are hiring again, leading to labour force growth. White collar employment is on the rise, resulting in an increased demand for office space.
So as a market in transition, is now the time to buy?