A new look at the Mandurah Train Line TODs … the apartment living options

Those of you who have been following the PropertyESP blog for a while know that we have an appetite for TODs (transit-oriented developments) because of their economic impact.

So we decided to take a look at two TODs on the Mandurah train line, in Cockburn Central and in Wellard.

Wellard is the site of Perth’s first Mandurah line TOD, but like nearby suburbs it started with a focus on houses.

The Cockburn Central TOD however was established with apartments and home units in mind, and the first home units came onto the market in 2008. Wellard followed suit with its first units sold in 2012.

Home units are the more popular accounting for 72% of the units sold from 2008 onwards. The bulk of the other options were apartment houses.

What’s the difference between the two?  Home units are completely self-contained and a better standard than flats (which are rarely built these days).

Apartment houses on the other hand, are considered more luxurious and have more amenities.

Two bedroom apartments and home units dominate the Cockburn Central and Wellard TODs… with 40% of sales since 2008 being of 2 bed-2 bath-1 car park and 25% being 2 bed-1 bath-1 car park.  17% were 1 bed apartments and home units.

The dominance of the single car park is a reflection of the property being close to the train line, with good access to the City, but may not reflect the reality of living 10-14km from the beach.  In fact, more than 80% of the properties sold had room for only one car.

But with more train stations coming online, we can expect to see more TODs and more developments that will take full advantage of these transit links.

If you are interested in the full results of the sales analysis for Wellard and Cockburn then feel free to contact Samantha Reece on 0452 067 117.

PropertyESP we make sense of property.

Apartments in greenfields – a match made in heaven?

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!