Commerical Update: Capital Rotates to Commercial as Perth’s Tax Landscape Shifts

July 2026


Perth investors are moving fast on Australia’s biggest residential tax reforms in a generation. With negative gearing on established residential property tightening from 2027 and metro industrial vacancy sitting at just 1.9%, capital is rotating into commercial assets that sit entirely outside the changes.

That tightness runs across sectors. Perth’s CBD office market is three years into a supply drought with no new stock before 2028, neighbourhood retail is trading on 6% yields, and retail values rose 23.8% in the year to March 2026.

We’re seeing that appetite convert directly into transactions over the last two months, while celebrating some major milestones for the business.

  • We celebrated three years on July 1st with approximately 460 deals, $800M in commercial property transacted since Sterling’s 2023 launch
  • Jack and I settled 1050 Hay Street, West Perth for $11.5M, our first freehold sale in 33 years
  • Jack Bradshaw & Simon Brady sold the West Leederville Portfolio for $7M, 1,970sqm corner site, hotly contested campaign
  • Jake Wallman & Simon Brady sold 135 Kingsley Drive, Kingsley for $2.35M, 20-year childcare lease to 2040

For a deeper dive into the latest market trends and insights, read our latest commercial update see below:

Brian Neo

Managing Director

0411 868 486

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