Ikea Buys Perth Property and Plans Nationwide Expansion

Ikea is increasing its Australian presence by purchasing the Perth property that houses one of its flagship stores. This move is aimed at enabling sustainable upgrades and supporting broader growth, although rising construction costs may slow down the pace of new store openings. The $163.75 million acquisition also includes four smaller tenancies on the site, strengthening Ikea’s property portfolio during a time of continued retail transformation.

The flat-pack furniture brand currently operates 10 large-format stores across Australian capital cities including Perth, Sydney, Melbourne, Brisbane, Adelaide and Canberra. Ikea already owned most of these locations. By acquiring the Perth site, it now fully owns all of its big box outlets in Australia. This strategic decision supports Ikea’s ongoing efforts to enhance both in-store and online customer experiences.

Ikea had previously attempted to buy the Innaloo property in 2017 for $132 million, but a property group outbid them with an offer of $143.5 million. With the site now under Ikea’s ownership, the company plans to introduce upgrades such as rooftop solar panels, EV charging points and sustainable energy systems to improve delivery logistics and in-store operations.

Although Ikea remains focused on expansion, particularly in underserved metropolitan areas, high acquisition and construction costs pose significant challenges. Securing suitable large-scale sites near well-established communities has become increasingly difficult, making future developments more costly and complex.

The Perth store delivered the highest sales growth among all Ikea Australian stores last year. With full ownership secured, Ikea is positioned to turn the location into a model for eco-friendly upgrades and seamless retail integration.

Source: The Australian, Startup Daily, Ingka