Housing boom prompts retail strip rebound with Claremont leading the pack

Perth retail strips have defied the digital trend to rebound — fuelled partly by the housing boom — with Bay View Terrace topping the list. The Claremont strip has just over one per cent vacancy, according to Ray White’s annual retail strip report, which equates to one empty shop. RWC’s Brett Wilkins said every single one of the eight strips — including 691 shops and 92,000sqm of retail space — had improved significantly over the past year. The current vacancy rate stands at 6.33 per cent, which is a notable improvement from last year’s 8.42 per cent. Mr Wilkins said the thriving retail scene was due partly to the burgeoning housing boom, which drove people to the hospitality and homewares sectors. “The flourishing housing market has, in turn, bolstered consumer confidence, driving retail trade, particularly in the food and homeware sectors,” he said in the report. Beaufort Street in Mt Lawley signifies the trend, exhibiting a 7.85 percent vacancy rate, down from a massive 16.79 per cent in 2019 when roadworks drove customers away. “The buoyant housing market has bolstered consumer confidence, reflected in increased retail expenditure,” said the report. “Beaufort Street maintains a stronger presence of furniture, housewares, appliances, recreational goods, and personal and household items compared to other areas,” said the report. “This trend aligns with the growing population and rising property values, as residents continue to invest in their homes.” The report highlighted Bay View Terrace, which is focused on fashion retailers, as the top strip with a vacancy rate of only 1.25 per cent — or one shop. The healthy retailer presence is down from a 5.37 per cent vacancy rate last year and 10.16 per cent in 2017. “This area has historically maintained low vacancies, even during the pandemic, benefiting from shifting market dynamics that saw increased community engagement with neighbourhood retail,” the report said. “The work-from-home trend bolstered patronage of local high streets, particularly for food-based experiences and services requiring in-store visits.” There is also only one vacant shop on Napoleon Street in Cottesloe, which benefits from the area’s above-average disposable income, which has been “further bolstered by rapid growth in the local housing market“. Rokeby Road has a 10.76 per cent vacancy, which is down from a high of 15.19 per cent in 2018. the report said it was reclaiming its position as a dynamic and attractive destination. Oxford Street in Leederville has 5.99 per cent vacancy, down from a high of 14.63 in 2020. It has transformed into a foodie hub. There is a 2.2 per cent vacancy rate on Scarborough Beach Road in Mt Hawthorn, which equates to two vacant shops. “The consistent occupancy levels observed over the past two years underscore Scarborough Beach Road’s popularity as more than just a local shopping destination, but as a thriving community hub.” Victoria Park and East Victoria Park has a 6.58 per cent vacancy rate, with both areas dominated by hospitality. South Terrace remains the only strip with significant vacancies — at 20 per cent — which equates to seven shop of the 34 on the strip. It is down from 25 per cent last year. The report said it was still recovery from the post covid downturn. The report is positive about Fremantle’s future, claiming it thriving hospitality scene and the area’s historical significance positions it to continue rebounding. “This retail mix, while facing challenges, still embodies the essence of Fremantle’s laid-back, culturally rich atmosphere,” it said.