Earthworks commence at Finbar's landmark Civic Heart project
Experts across the nation are tipping the Perth property market to lead the country in terms of growth in 2021.
After the ‘unusual’ year that was 2020, with shutdowns, record government stimulus measures, and continued record low borrowing costs, housing prices across the country are tipped for further growth in 2021 and to more than make up for any pandemic triggered losses.
A recent Corelogic report tipped Perth property to experience the strongest levels of growth in the country with a predicted 12% surge in prices throughout the course of 2021.
The Reserve Bank’s decision in November to cut the benchmark cash rate to an historic 0.1% will also ensure borrowing costs remain at record lows which is expected to further fuel activity across the sector.
While commentators appear united in their prediction that our local market will experience the biggest gains across all capital cities, it’s important to remember that we are coming off a low base with Perth having experienced reduced buyer activity and subdued conditions for close to a decade.
With vacancy rates at record lows and tipped to fall further in 2021, and a lengthy list of former Western Australians on waitlists to return home, those who have been considering purchasing or investing shouldn’t sit on the sidelines as the market gathers momentum around them.
Our own recent buyer activity and sales figures certainly reflect the growing confidence in the Perth market, with bumper sales months recorded for October, November and even December, traditionally a month where sales activity falls as buyers turn their attention to family holidays and get togethers overseas or interstate.
The month of October saw more than $30 million dollars in sales, roughly translating to $1million in sales per day, a level not seen since 2017.
November sales were similarly strong and December again saw us secure 49 sales with an end value of $29 million, the highest December levels since 2013, during a month which is traditionally slow in terms of residential sales.
The recent spike in sales activity across our development portfolio provided the impetus needed to commence earth works this week at our landmark Civic Heart project in South Perth.
We have so far secured more than $60 million in sales at Civic Heart, a significant achievement on the back of year dominated by global uncertainty.
We marked the commencement of earthworks on site in South Perth this week with some very excited prospective buyers, stakeholders, contractors and the Minister for Planning, Rita Saffioti alongside our team.
It is an exciting milestone for all of us and marks what will become WA’s biggest residential project and the most significant in our 25-year history. Interestingly, it’s also just metres from the very first residential project we completed in Perth more than a quarter of a century ago and marks a long term commitment to the area and local community.
Civic Heart will eventually become home to more than 300 residential apartments and is set to breathe new life into the area with a thriving range of hospitality and retail ventures and public amenities for locals, residents and visitors to enjoy.