After delivering a record financial year, Sterling Property capped off the final quarter with $152 million in transactions across 58 deals. The result highlights sustained momentum and a deepening buyer pool across Perth’s suburban commercial landscape.
Investor appetite for quality commercial assets in Perth’s inner-city suburban corridors has surged. Recent campaigns across the childcare, hospitality and industrial sectors have revealed faster execution, more competitive bidding and sharper yields, many of them below market guidance.
Managing Director Brian Neo said the agency has seen a significant lift in enquiry and competition, particularly across essential services and lifestyle-based commercial assets.
“We are seeing urgency from investors who are positioning early ahead of potential rate cuts,” he said. “That urgency is translating into shorter campaigns, stronger pricing outcomes and a clear shift toward stable, income-generating properties.”
Sub-$5 Million Sector Leads the Momentum
Recent childcare transactions have led the activity. Sterling Property’s sale of 58 Reserve Street, Wembley, a 50-place centre leased to Jellybeans Childcare (G8 Education Limited), achieved a 5.38 percent yield, the sharpest recorded for a WA childcare asset since the low interest rate era. The deal closed prior to campaign end following multiple offers.
A second childcare asset in Willetton, priced below $3 million, has also been contracted at a sub six percent yield. This continues a clear trend of investor interest in well-leased, essential services property underpinned by national operators.
Senior Partner Jake Wallman said demand in the sub five million dollar range remains the most competitive.
“This is where we’re seeing the strongest demand and pricing performance,” he said. “Childcare, in particular, continues to attract capital due to its long leases, strong rental growth and national tenant covenants.”
Partner Simon Brady added that investor interest is clearly shifting toward lower risk assets.
“There’s a flight to quality underway, with buyers targeting secure income and long WALEs,” he said.
Hospitality Assets Performing Above Expectations
The hospitality sector is also performing strongly. In Subiaco, Sterling Property sold 361 Rokeby Road, leased to Piccolo Trattoria, within just five days. The $2.3 million freehold sale reflected a 5.15 percent net yield and included future development potential under its Mixed Use zoning.
Senior Partner Jack Bradshaw said Subiaco remains one of Perth’s most attractive suburban precincts.
“Rokeby Road continues to outperform,” he said. “Investors are chasing walkable, high-amenity locations where zoning supports long-term value creation.”
Industrial Compression Signals Broader Market Shift
Investor competition has also been evident in the industrial market. The recent off-market sale of 192 Daly Street, Belmont, was finalised at a yield just under six percent, outperforming quoting expectations of 6.5 to 6.75 percent. The 6,475 square metre site is leased to a national tenant on a three year term.
Senior Partner Colm McHugh, who managed the transaction, said the result shows how tightly held Perth’s industrial core has become.
“Belmont’s access and infrastructure have made it one of the most competitive precincts in the metro area,” he said. “We’re also seeing rising confidence in rental growth, which is driving pricing ahead of expectations.”
Sterling Property expects conditions to remain competitive into the second half of 2025, with strong buyer depth continuing across essential services, lifestyle and industrial assets.
To discuss upcoming opportunities across Perth’s high-performing suburban market, contact:
Brian Neo – Managing Director | 0411 868 486
Jack Bradshaw – Senior Partner | 0439 095 336
Colm McHugh – Senior Partner | 0420 312 645
Jake Wallman – Senior Partner | 0403 975 298
Simon Brady – Partner | 0407 486 401
