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Investors show confidence in WA apartment market

Data from the West Australian Apartment Advocacy shows that a large portion of WA investors is optimistic about the future of the market, despite the recent softening of prices.

The research, which was distributed nationally with the assistance of Strata Community Australasia (SCA), revealed that 86% of those surveyed believed their apartment would increase in value in the next ten years.

The data reflected 1158 WA respondents, of a total of 3312 apartment owners and renters.

It comes after research from Select Residential Property earlier this month identified the Perth suburbs of Wandi and Piari Waters as areas where property prices are most likely to flat-line in the next three years.

But WAAA Director Samantha Reece said an onslaught of recent infrastructure projects meant there was a range of unique opportunities within the city.

“East Perth, Burswood, Perth, and Fremantle are all located on public transport, have just secured fantastic new assets including the Optus Stadium and this certainly will add value in the long term,” she said.

“The East Coast is certainly viewing Perth as highly affordable and with the minerals sector once again firing on all pistons, we are bound to see some buoyancy in the apartment market in locations which offer long term property growth.”

According to WAA data, 82% of investors bought an apartment because of its location, in comparison to 39% for affordability.

Being close to public transport (49%) and low maintenance (38%) were also part of the decision-making process.

The results revealed that 61% planned to buy an investment property again with over half stating that apartments would be part of that consideration.

Ms Reece said the type of apartment also proved to be a key consideration for investors.

“We found that 37% of investors were seeking a three bedroom, in comparison with 70% for a two-bathroom when looking for their next investment purchase,” she said.

“A total of 71% were also seeking 2 car-bays and 53% said they would look to purchase either on the coast, river or inner city.

“This data is vital for developers as they move into this next phase of releasing new projects to market and making sure they are providing the right mix for WA buyers.”

There were 307 apartments sold in Perth in Q4 2018, with 56% of those representing owner-occupiers.

A total of 20% were also investors.

Source: https://www.therealestateconversation.com.au/news/2019/04/24/investors-show-confidence-wa-apartment-market/1556066728

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