Apartments in greenfields – a match made in heaven?

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I was interested to hear recently that Peet Ltd has decided to diversify its property holdings and move into the area of apartment living.

What’s more, their apartments in WA are in traditional greenfields locations such as Wellard.

The Invita apartments have now released three stages comprising of 36 apartments, 46 apartments and then 106 apartments.

The first two stages went from two storey to three storey but were still very small complexes and sold out within 4-6 weeks of launching.

No doubt their price mix was also highly competitive with one bedroom apartments (66sqm) starting from $280,000 and two bedroom (86sqm) starting from $320,000.

In conjunction, Peet acknowledged that the placement of Wellard on the train line plus the company’s decision to build the shopping centre in advance, were also key advantages to their recent sales success.

But for me, I just wonder if people have the appetite to live in a 106 apartment development when they are surrounded by 4 bedroom/2 bathroom McMansions!

With Peet forecasting releasing 8500 apartments in their near future and with 500 currently under design and construction, the company has certainly taken a bold step and are the first off the rank to offer this alternative housing option – which is certainly affordable (at last).

But certainly pricing plus also connectivity and clustering are key to this mix and hence this model could not be applied willy nilly anywhere else in Perth.

Paul Lakey GM of Development for Peet WA also acknowledged that there has been a relatively high ratio of investors for this new product and with the Fiona Stanley Hospital nearby, this is certainly an attractive rental option, with apparently quite good returns.

Either way I commend Peet for taking the risk and hope that this bold move assists with their ongoing success!

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