Survey results released today by the WAAA has shown that 67% of investors believed their apartment would increase in value within 5 years and 98% believed that in ten years their property value would have increased.
The WA Apartment Advocacy released the overall results of its first WA survey today to a packed UDIA audience.
The survey which was held for the months of January and February 2017 achieved 359 responses, of which 88 were investors. The investors tended to own properties in Cockburn Central, CBD, East Perth and South Perth but also covered territory from Alkimos to Bunbury.
“These investors were looking for very similar things to owner occupiers and they chose an apartment over other housing options because of easy care, affordability, location and rental returns,” Ms Reece said.
“Over half also bought off the plan which shows that investors understand the need to purchase early rather than later – especially in sought after suburbs.
“But what was most interesting was that when asked about the value of their apartments in the next year, 57% felt that their price would remain stable while 19% believed it would increase in value.
“Over the next five years, 33% felt that their price would remain stable and 67% believed their property would have increased in value and in ten years 98% believed that their property would have improved in value.”
Ms Reece said that with the constant hype about consumer confidence in the media, it was evident that apartment investors felt some sense of buffer.
“If you think about it, most of the sales are of brand new apartments in key locations near train stations and infrastructure,” Ms Reece said.
“We looked at some apartment data in the Western Suburbs recently and they were achieving a yield of 4.6% which was much higher than the houses in these locales (2.4%).
“If you currently own a 1970’s Maylands apartment then you will have trouble leasing or selling it because of the injection of new stock into these areas.
“As such the flight to quality is certainly an overarching theme that we are witnessing – and that applies across the board ie commercial properties as well.”
155 resident owners also completed the survey along with 113 renters.
In conclusion Ms Reece said that location was vital to successful apartments.
“We need to think of these developments as mini communities and ensure that residents have easy access to a supermarket, restaurants, bottle shop and the like as these people believe it is all part of the apartment culture.
“Sticking apartments on main roads is not necessarily the best outcome unless the residents have access to these extra services they are seeking. That is where precinct planning carries real benefits.”
WAAA is the voice for people who choose apartments in WA. It seeks to demonstrate the need for housing choice in WA and the role that apartments can play. If you wish to comment about what Perth could be doing to create more choice of housing then log onto www.waaa.net.au.