Perth Investors Evaluate Commercial Assets Amidst Tax Policy Evolution
Perth investors are recalibrating their portfolios as federal tax reforms reshape the investment landscape. With residential negative gearing restrictions legislated to apply to properties purchased after 12 May 2026, the market is observing a capital shift toward commercial assets, which demonstrated robust growth throughout the 2024 calendar year.
The facts, sourced
- The Perth office sector showed moderate growth during the 2024 calendar year, according to REIWA data from March 2025. [2]
- Sterling Property noted in July 2026 that growing numbers of residential investors are exploring alternatives to traditional residential holdings due to major tax reforms. [1]
The Legislative Context
The Perth market is navigating a period of capital reallocation following significant property tax reforms. Sterling Property reported in July 2026 that investors are reassessing their positions as the July 2027 commencement date for negative gearing restrictions approaches. As noted in Dolaro (June 2026), these reforms apply to residential properties purchased after 7:30 pm on 12 May 2026, with rental losses for these properties becoming quarantined from 1 July 2027.
Historical Market Trends
While policy discussions influence sentiment, the commercial sector’s performance provides a point of reference for investors contemplating diversification. REIWA data from March 2025 confirmed that the Perth commercial market maintained broad-based growth across all areas throughout the 2024 calendar year.
Sector Performance and Asset Strategy
Performance data from the 2024 calendar year highlights the strength of non-residential asset classes. According to REIWA in March 2025, the industrial and retail sectors were the top performers, both recording a 15.1 per cent increase in median sale price per square metre. During the same period, the Perth office sector also recorded moderate growth. Investors are currently evaluating the nuances of this transition, considering the liquidity structures and management requirements that differentiate commercial property from residential holdings.
As investors adjust to the tax environment with changes taking effect in 2027, the growth of Perth's industrial and retail sectors in 2024 offers context for those considering commercial property as part of their broader strategy.
Sources
- Sterlingproperty — July 2026
- Reiwa — March 2025
- Dolaro — June 2026