Perth apartment market shows consistent results
Analysis of 1915 apartment sales in the Perth CBD from January 2017 to March 2020, has shown that this property sector, unlike outer lying suburbs, is maintaining its resale values.
The research, conducted by analysts PropertyESP, also discovered that 46% of the apartment sales were derived in East Perth and 28% in Perth CBD, with 690 sales settled in 2017, 662 in 2018 and 559 in 2019.
Ms Reece Director of PropertyESP stated that 42% of the apartment sales were 2 bed/2bath and 21% - 1 bedroom. But the key identifying trait with the CBD properties was their ability to retain their values consistently over the three-year period, with 1 and 2 bed apartments also showing an uptick in median prices in the last 12 months.
“With one bedroom apartments median price $355,000, 2 bed/2 bath $520,000 and 3 bed $838,000, the Perth CBD also represents one of the most affordable cities in Australia,” Ms Reece said.
“If you were considering Sydney or Melbourne you could be paying up to $1 million for a one bedroom apartment and hence Perth CBD represents excellent value for investors who are looking for long term returns.”
Perth LGA apartments were also tightly held by owners with only 31 resales in the three-year period.
Ms Reece stated that the CBD had grown in attraction over the last few years with the introduction of Yagan Square, Raine Square and Optus Stadium to name but a few.
“The 2019 apartment survey conducted by WA Apartment Advocacy (WAAA) found that 42% of the 1100 respondents would seek to purchase their next apartment in the Perth CBD,” Ms Reece said.
“These respondents were predominantly working households with 78% classified as professionals or managers.
“There is no doubt that Perth CBD is on the same trajectory as our Eastern States counterparts and hence the inner-city population will grow as will the apartment sector, to accommodate this demand.
“With so many buyers concerned that apartments may not sustain their values, this data provides much needed assurity that if you buy in a great location, property prices will ultimately be sustained.”