The years of 2013 and 2014 were heady times for Perth’s apartment market. Off-the-plan sales were being snapped-up and developers were eager to secure new sites.
With close to 4,800 apartments added to the Perth market in 2015, much of the pent-up demand has been met and the development industry, while still moving forward, is now adjusting to a more moderate pace. This environment, says Colliers International Director Residential Sales and Marketing Wayne Chorley, is one of the best times to buy an apartment.
“The market is now rebalancing, readying for the next growth phase and the perfect time for buyers to purchase is when the market is at or near the bottom of a cycle. There is some excellent value in the market and incentives are also on offer.”
On the supply front, Mr Chorley says apartment completions are expected to peak this year and lower completion numbers are anticipated over the next few years. “Prices have been tracking down from the market peak in June 2014 and according to REIWA data, the median unit price for Perth’s metropolitan area is now around the 2009 and 2010 level.”
According to Colliers International Residential Sales & Marketing Executive Ashlee Arnott, Perth’s apartment market has started to regulate itself. “Developers are applying for fewer approvals”, she says, “and where there is significant supply, projects have either been deferred until market conditions improve or onsold for a different purpose.”
Ms Arnott says the better projects have proceeded and their sales activity reflects underlying demand for good-quality, medium and high density infill apartments. “Compared with the apartment markets in Sydney, Melbourne and Brisbane, Perth holds significant upside for investors to get in low and ride the inevitable growth.”
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