Burswood premium continues

PropertyESP will be releasing a media statement this week after examining the Burswood apartment market from 2013-2017.

While overall the median price for apartments in this locale has grown by 11% from $700,000 to $780,000, it is the fact that this growth has occurred across all bedroom configurations that makes it even more interesting.

One bedroom increased its median price point by 6% in these four years, two bedroom 17%, three bedroom 14.5% and four bedroom 8%.  This contrasts to other apartment nodes nearby.

Plus in this time frame only 16 properties resold and when you see property being held onto this tightly then there tends to be an indication of high satisfaction and a sense that more growth is anticipated.

The sales data also demonstrated Burswoods’ preference for larger apartments with 21% three bedroom apartments sold in the four years, in comparison to its counterpart in Rivervale which sold just 13%.

There are calls from some Councils that apartments in fact can dilute the premium brand of a suburb – but in this case it is quite clear that Burswood not only has established this solid reputation but also maintained it.

Plus with the Stadium finishing and the Burswood Peninsula Precinct Plan on the horizon, this suburb will only continue to grow in value.

If you like the way we look at data – then let us have a look at your suburb.  Unlike Eastern States companies, PropertyESP gets into the nitty gritty and we look at the long term – not just the last quarter.  Because the devil is in the detail!

 

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Coastal living the new black

Despite the resistance by coastal suburbs to welcome apartment living into their community – the research from the WA Apartment Advocacy has clearly shown that this status is going to have to change – and soon.

Of the 155 apartment owner occupiers surveyed, 15% had been living in a coastal location before then moving into their apartment (19% living on the coast).  However when asked where they would choose to live next time – 70% stated an apartment and 49% stated a coastal location.  44% also indicated they would choose riverside.  This was evenly dispersed across all age groups.

Of the 113 renters interviewed, 11% had been living on the coast and 14% moved into a coastal apartment.  But when asked where they would choose to live next 73% stated an apartment and 47% demonstrated a preference to coastal locations.

Of those living in the inner city – the owner occupiers showed a movement away from this address with a drop of 61% to 50% as this being their preferred location.

With Perth’s apartment market still very young, and limited supply in restricted locations, Perth apartment livers have chosen the best from what is on offer.

But ultimately what they want is access to the coast – which up until now has only been available to the privileged.

Councils that have therefore chosen to listen to the 5% of their population who reject apartment living have quite obviously chosen to ignore the majority who want this choice (and rightly so) for their home.

It is a message that Councils and Government will now need to start listening to.

At PropertyESP we are glad for this intelligence which raises the argument for permitting apartment living in key locations such as Trigg, Scarborough, Cottesloe and so forth.  Because without it – all we hear are the nay sayers.  But now there is a larger voice speaking up – and they are saying yay for choice!

Applecross apartments defy the norm

We recently conducted some research on behalf of a client of ours examining what was happening in the apartment market in Applecross and Mt Pleasant from 2011-2016.  This data was very interesting because despite having some initial setbacks, these two suburbs have once again rebounded.

Looking at 164 apartment sales in the five year period, the analysis showed that the median sale price in Applecross in 2011 was $875,000 and peaked at $1,250,000 in 2014 before settling at $1.1 million at the end of 2016.

Mt Pleasant apartment sales on the other hand started at median price point of $1,125,000 in 2011 before plummeting to $660,000 in 2013 before then rising again to $1,195,000 in 2016.

price per annum

The data also demonstrated that regardless of one, two or three bedroom apartments, there was an upswing in the median property price for both Applecross and Mt Pleasant in 2016.

bedroom sales

But what was most surprising was that being on the rivers edge (no road in front) or river front (with a road in front) reflected no price difference and as such we believe that this a paradigm that will definitely shift in years to come with the $235 million Canning Bridge redevelopment.

The data also demonstrated that rental yields were approximately 4.2% for apartments compared to 3.3% for houses in these areas.

As you can imagine this company now has good news to share with its buyers and that will only build confidence.

If you want to know what is happening in your suburb than contact the team at PropertyESP.  We delve into the nitty gritty and unveil good news!

 

 

 

 

 

 

 

 

 

 

 

 

Scarborough shows robust apartment results

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.

scarborough

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!

 

Fremantle continues to perform

Despite the doom and gloom about the Perth property market, PropertyESP keeps finding some good news stories and Fremantle is definitely one of them!

We had a look at apartment sales over the last five years for North Coogee, North Fremantle and South Fremantle.

Firstly sales were consistent for these three suburbs across the past five years with about 80-150 properties changing hands per annum.

Secondly we saw that the one and two bedroom apartments had maintained their value over that time and three bedroom apartments were beginning to show signs of recovery.

So anyone who is waiting for the market to bottom out in Fremantle is going to be waiting for some time!

median sales price

North Fremantle also outperformed the other two suburbs for property values and this could be related to these properties tending to have ocean or river views and as can be seen from the below graph – ocean/river front is commanding a median price point of approximately $6000/sqm plus.

price per swm ocean views

Rental yields for apartments were also higher than the Perth metro at 4.5%.

While you may be hearing generic news about the Perth property market – there is always value in drilling down – and that is what PropertyESP does best!

PropertyESP will be presenting the findings of the Fremantle sales research at a Mirvac sponsored seminar on Tuesday 9th August at Bib and Tucker from 5.30pm.  If you know someone who is looking to buy an apartment in Fremantle – let them know and they can register at info@propertyesp.com.au

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Still a place for premium in Perth

Samantha Reece recently attended the official opening of Aria in Swanbourne.

Developed by Blackburne Group, this project is priced from just $515,000 for one bedroom apartments and reflects a standard that, to date, is unsurpassed.

While some companies include elements such as a private dining room or boardroom in their premium developments, Aria has really taken luxury to the next level.

The entertaining area was stunning with uninterrupted views of Perth City and not only included a lap pool and sun deck, but bar area and private dining and lounge that reflected a multimillion dollar mansion in the Western Suburbs.

Coupled with a yoga room, gym, sauna, steam room and wine cellar, Aria successfully conveys a luxurious resort lifestyle.

In particular, the penthouse apartments were designed to reflect a two storey New York loft apartment and this further added to the cosmopolitan atmosphere.

aria blog 1

With much talk about the apartment market being more focused on affordability, it is nice to see that some developers recognise that downsizers in fact are looking to spoil themselves, even though they are forfeiting their four bedroom/2 bathroom home for a much smaller domain.

With 16 sales since the unveiling, the Aria project is also demonstrating that there are affluent buyers in the market, but that they are also discerning.

With the apartment market evolving in Perth, we need to remember that while choice of location is important so is choice of style and price point.

PropertyESP has no financial connection to Blackburne and this review has been written entirely independent of Blackburne and its associates.  We just like to share with our readers the evolving trends in the WA property scene!