Because PropertyESP was looking at Fremantle recently, we decided to cast our eyes north and look at the apartment sales for Scarborough for 2010-2016.
We looked specifically in the area nominated by the MRA for redevelopment, in which there were 211 sales of apartment houses. While there was a peak in 2013/14, the Scarborough apartment market has been achieving about 30 sales per annum.
Interestingly when looking at the apartment amenities we found that 99% of the apartments sold had a pool and secure parking, with 50% of these sales also including a sauna and gym.
3 bed/2 bath apartments accounted for 114 sales (the bulk) while 2 bed apartments were the next most popular with 80 sales.
But what was interesting to note, is that the Scarborough apartment price has gradually grown since 2013 after reaching a peak of over $1.4 million in 2010. The 2016 median price is now at $1.1 million.
And in the 2011-2015 period, the Scarborough apartment market has achieved capital growth of 15%. However when you look at 3 bedroom 2 bathroom apartments alone, these have achieved 28% capital growth over the same period, which is evident in the below graph.
Unlike other coastal locations, Scarborough property does not yet demonstrate a premium for ocean edge over ocean front properties. PropertyESP is somewhat confident however that as developers grab those ocean edge blocks, this price variation will come to play and hence anyone buying into the market place would be hoping for that uplift (which in Fremantle is 13% premium difference).
Once again the apartment market in this location is showing that since 2011 it has been in a steady pattern and in fact for the 3 bedroom 2 bathroom apartments, is recovering very nicely.
If you would like to see the full results for Scarborough then contact PropertyESP on 0452 067 117 and organise a presentation – because you won’t see this data anywhere else.
We are known, after all, for making sense of property!