There were only three developments yielding 163 new apartments launching to the market this quarter. However, there are a number of projects sitting on the sideline with 20 projects yielding 1,578 apartments looking to launch over the next 12 months. This is attesting the regained confidence in the Perth apartment market. Included in the launches are projects such as Wright Street Apartments and Eden apartments, which launched in Q4 and are already seeing strong sales.
Mr Cresp said, “Apartment over supply was not an issue for the Perth market. Apartments accounted for only 17% of all dwelling approvals according to ABS data for the YTD August 2017. Minute in comparison to Sydney, where 54% of approvals were apartments. As to who these apartments are aimed for, according to Urbis research 53% of sales were to owner-occupiers this quarter, and a further 25% were to local state investors.”
The outlook for apartments in Perth was positive, with sentiment improving about the economy and property market in general for 2018.
“We expect to see population growth levels improve, leading to more demand. While we are seeing lower levels of apartment completions forecast in 2018, which will allow the market the breathing space it needs to sell any excess apartments. Overall, I feel the Perth apartment market is sitting comfortably.” concluded Mr Cresp.