Why Serai in North Fremantle is proving popular with downsizers
Local downsizers have responded in droves to what prominent Perth developer, Megara, has put together in North Fremantle.
They've recently started construction at Serai, a new mid-rise apartment development designed specifically to cater to downsizers through its larger-than-normal floorplans, high-end fixtures and finishes, and an equally high level of resident facilities, something that tends to be looked upon favourably by those downsizing.
Over 80 per cent of the purchasers so far have been downsizers, predominantly locals, something which Megara knew they were going to see when they drew up the plans.
"We expected the local downsizer market to make up most of our purchasers," Megara Director Jamie Clarke says, adding that everything about the building and its location is tailor-made for that specific buyer demographic.
Megara worked with architect Felipe Soto who cleverly designed the two buildings to encapsulate everything locals love about North Fremantle; the coast and the river. Apartments feature floor-to-ceiling windows that draw in natural light and frame views of the Indian Ocean and Swan River.
While downsizers have jumped at the largest apartments, the three and four-bedroom apartments, as well as the small collection of four-bedroom townhouses, the two and one-bedroom apartments have also proven popular.
"The well-trodden path for a downsizer is to trade out of the family home into a large apartment, so the downsize doesn't seem too daunting and they still have space to have extended family or guests stay, but that's not the path for everyone," Clarke says.
"Budgets naturally influence what you're going to move into, but we've had several downsizers opt for our one-bedroom apartments because they don't want, or need, the additional space. They want to lock the door and spend their retirement traveling."
The boom in the Perth market over the last few years has encouraged a stronger downsizer movement, Clarke says. So far in 2024, Perth house values have risen 18.2 per cent, the best-performing capital city by some margin. In turn, unit values have risen 21.3 per cent over the same period.
"The last few years have made the downsizing path easier as those who own larger family homes have seen their equity rise significantly in recent years, compared to fairly mooted growth in the years prior. There's no better time in the cycle to be looking at downsizing while both houses and apartments grow in value."
Unforeseen, but not entirely surprising, have been purchases from those living in Sydney with family ties to Perth, as well as expats living overseas.
"They're buying now and securing themselves a residence for future use, whether it be on construction completion or shortly after.
"They also see great value compared to how far budgets stretch in coastal Sydney. They've been in the best-performing housing market for decades and have seen their wealth through property skyrocket. Now they're looking to return to Perth in the not too distant future."
Another facet of Serai that is appealing to the downsizer is the level of amenity within the building. Residents will have access to an infinity pool with unobstructed views over the Swan River, as well as a gym with a sauna and yoga studio, and an outdoor cinema.
There’s also a games room, designed with social interaction in mind, featuring a pool and poker table.
The emphasis on community extends to the active street-level area, where a landscaped garden and café create spaces for residents to connect with neighbours.
Clarke says having a high-level of amenity is important in modern-day buildings.
"Not just limited to downsizers, but people nowadays crave convenience, and if we can put a high-level of leisure facilities within their building, as well as a cafe, that really appeals to residents who don't have to go far for everything they need."
What has been an important factor to consider, particularly for locals, is the lack of new development coming to coastal areas like Fremantle. Future supply across most suburbs in Perth, particularly those near the coast, is as low as anywhere in the country.
"When we complete there will be almost nothing comparable to Serai, or anything under construction or even in planning currently. There won't be a lot of new stock that is competing within the immediate vicinity, and that's not lost on our buyers who know this is a rare opportunity," Clarke says.
Serai is under construction by builder West to West, with completion slated for early 2026.
Clarke says being under construction in today's built environment is a huge confidence lift for buyers.
"Prior to 2017 or 2018, buyers weren't really phased as to what stage the development was at," Clarke says.
"Now they're more informed than ever, and naturally want certainty and assurances their new apartment will actually be delivered. A small minority of buildings don't get delivered, but they're the ones that grab the headlines and dampen confidence across the board."
