It is estimated that the population of inner city Perth will jump nearly 60% to more than 35,000 people by 2036, making the area a vibrant place to live. Major factors that will encourage the boom in inner city population over the next two decades include urban sprawl which makes living closer to the CBD more attractive due cost and time savings in commuting.
Perth is geographically one of the largest cities in the world. For example, out of 1,008 cities in the world, Perth has been ranked 59th largest in geographic size according to the 2015 edition of Demographia World Urban Areas.
With that in mind, it might not come as much of a surprise to find out that more than A$100 million in contracts were signed on the first official day of apartment sales at The Towers at Elizabeth Quay, Perth on Saturday, in what is believed to be a Western Australia (WA) record. Real Estate Institute of WA president Hayden Groves said, based on historical data, it was believed to be the greatest amount of money taken on the first day of sales at a Perth apartment development. Despite talks of Perth’s flagging apartment market, the eagerly anticipated development raked in over A$100 million with about 80 apartments snapped up on the very first day of its launch on Nov 28.
Elizabeth Quay is the centrepiece of a bold plan by the State Government to revitalise the city of Perth and embrace one of its best natural assets – the Swan River. The Towers at Elizabeth Quay sit as the jewel in this new and unique waterfront entertainment precinct, offering the perfect blend of life and leisure. The development comprises residential and retail opportunities, with the proposed Ritz-Carlton hotel as its centrepiece. The luxury apartments at The Towers offer sweeping views of the Swan River, Kings Park and Stirling Gardens, as well as designer furnishings and Miele appliances.
PRD Nationwide director Angus Murray, marketing agent for the units, said it was the most successful launch he had seen in his career. “Sales have mostly been to locals, with a lot of baby boomers,” he said. “And despite talk of a bad economy, there are still wealthy people in Perth.” They are hoping to sell at least 200 of the 379 apartments in the coming weeks, which will amount to about A$300 million.
Andrew Toulalan, 34, rushed to be the first buyer to sign on the dotted line, buying a 54sq m one-bedroom apartment for A$783,000. “It works out about A$14,500 per square metre, which is more than the $9000 Perth median, but it’s a dress-circle location and will shoot up in value once the development is complete,” Mr Toulalan, a director of waholidayguide.com.au, said.
Prices range from A$600,000 for a one-bedroom apartment, to A$12 million for the three-level penthouse, which is still on the market and can be reserved for A$20,000 a week.
Apart of commuting issues, Perth’s inner city is attracting more people as a place to live because of improving social infrastructure that will increase due to the major new investment such as the City Link and Perth Foreshore developments.
For property investors who can take a two-decade approach to the property market, now is a great time to invest in inner city suburbs such as Northbridge, East and West Perth. In particular, there are very exceptional investment opportunities in the inner city apartment market at the moment.
Property prices in Perth are now very competitive and it is only a question of time before they rebound on the back of rising population figures. Find out more about Australian properties and overseas investment from our articles here on Estate123 Insight!