If you are considering purchasing an apartment in Perth you need to be aware of how our property market contrasts to that of the East Coast as well as overseas.
Firstly, on a global basis, the normal density average is approximately 30% of the dwelling stock. In certain circumstances this can increase to 50-60% in key cities such as New York and Hong Kong.
In Sydney the percentage of apartments within the overall dwelling market equates to 58%. In Melbourne this ratio is 43%. In contrast Perth is just 12%.
Until five years ago apartment living in Perth was constrained to the CBD but slowly this has decentralised and we are now seeing developments on key train lines such as Cockburn as well as in highly sought after locations like Mt Pleasant and Claremont.
What we are witnessing now is not an oversupply, but rather a correction to the historical undersupply of apartments in Perth. And while there may be a number of apartments advertised, once again they will only come to fruition if in fact 60% of the development is pre-sold. And in this current market, this is only happening with well-designed projects in iconic locations.
Even if every project advertised did get built, there would still be an undersupply with Perth nowhere near the global 30% norm.
Perth is a more local based market place when it comes to apartment sales and recent Urbis data also demonstrates that 65% of the apartment purchasers are in fact owner occupiers. In contrast Sydney and Melbourne apartment sales are fuelled by overseas investors. And as a result, while apartments on the Sydney beachfront will achieve a price point of $1.4 million, in comparison you can purchase on the Perth coast from just $700,000.
With the Perth market one of the most affordable in the nation and with supply still significantly lower than other capital cities, buyers can be assured that in fact they are not buying in a heated market and this will undeniably provide a degree of confidence and surety.
If you are seeking a wise apartment purchase then now is the time to chat to the team at Norup Wilson. Because we design and build apartments which provide customisation and state of the art technology in iconic locations. And when you have that formula you can’t go wrong! Call our team today on 9315 1513 and see what options we have for you. We guarantee you will not be disappointed!