Optimistic outlook for Perth’s apartment market
Over the past 12–18 months, tighter lending conditions and the perception of a looming oversupply of apartments have deterred many investors in the Perth property market.
However, data from the latest Urbis apartment market report has quashed the notion that Perth’s apartment market is struggling.
The market showed signs of resilience in the September quarter of 2017, with almost $170 million in apartment stock sold, comprising 267 sales. The second half of the year yielded 624 apartment sales, a significant jump from the 511 sales in the first half of 2017.
In terms of upcoming developments, there are 20 projects yielding 1,578 apartments set to launch over the next 12 months.
Whilst growing numbers of apartment buyers would prefer to purchase a completed product rather than off-the-plan, experts say this desire is becoming less realistic.
“Our research shows presales are continuing to support new projects, with almost 60% of all apartments currently under construction having been sold off the plan,” said Urbis Director of Property Economics and Research David Cresp.
According to property market experts, it is more likely Perth will be faced with an undersupply of apartments in the coming years, when the property market stock has been absorbed and less developments are nearing completion.
Finbar Chief Operating Officer Ronald Chan said buyers were also shifting away from traditionally popular areas such as the western suburbs, to areas with good transportation links and a positive community feel.
“Off-the-plan apartments are becoming more attractive to buyers wanting to take advantage of new well-priced and ideally-situated developments in the Perth inner-city area,” he said.
“The key is to buy from a developer with a good track-record, in an area that has ample amenities and is ultimately somewhere you think people will want to be.”
Finbar Group is Perth’s top apartment developer and has a number of developments in highly-coveted inner-city and city fringe precincts – with Circa Apartments at The Springs Rivervale the latest to be launched to market.