Perth ranks as nation's best performing capital city unit market in 2023 as 2024 welcomes game-changing mega project
There's arguably no better time to be developing in Perth, at least when it comes to demand.
While cyclical factors such as cost of labour and materials are problematic, the demand is possibly as high as its ever been, and the lack of supply means price are rising, which is helping developers make projects stack up.
Property data analytics firm CoreLogic's data showed Perth was the number of performer in both the house and unit market in 2023. House prices jumped 15.2 per cent, to a median $691,000, now nearly higher than Hobart ($700,000), while units rose 12.4 per cent to a new median $464,000.
It was the same script in the rental market. Unit rents rose by 16.5 per cent, or around $80 per week on the median value over the year, CoreLogic found, while house rents were up 12.9 per cent.
Soaring rents has seen WA become the go-to interstate investment market, data from MCG Quantity Surveyors shows.
MCG Managing Director Mike Mortlock says WA is now considered among the nation's most investor-friendly jurisdictions.
"There's little doubt its popularity with real estate buyers from the east coast has increased the gap between home and investment," Mortlock says.
“Western Australia, and more specifically Perth, has seen a substantial uptick in investor participation. Price is a factor as some big capital city markets are now beyond the reach of everyday buyers. Our analysis shows the average price an investor pays for a property is approximately $615,000. That amount will go a lot further in Perth than it will in Sydney or Melbourne."
Taking advantage of the Perth boom is developer Golden Sedayu, who will soon be revealing more of their $3.8 billion mega project, Burswood Point.
The huge project, which at 38 hectares will be one of the largest urban development projects ever undertaken in Australian, will transform the Burswood Peninsula into a thriving, living precinct with 4,500 residential apartments as well as office and retail space.
The project is set to inject more than $10 billion into the state’s economy and generate 25,700 West Australian jobs over the next 10 years.
Golden Sedayu, a partnership between Perth’s Golden Group and one of Indonesia’s largest property corporations Agung Sedayu, has also allowed for 110,000 sqm of public open space, larger than Langley Park. The project has over 2.5 kilometres of Swan River foreshore.
Already lodged with council are development applications for two premium apartment towers with 206 apartments and four retail tenancies on the north of the site. Another application for two more towers due to be lodged later this month.
The first homes and apartments will go on sale early in 2024, with the remainder of the Burswood Point development released as approvals are granted.
