4 Jan 2016

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New suburban apartment developments are predicted to outnumber inner-city complexes in the new year as major developers continue to target high-end suburbs.

Figures compiled by consultants Urbis for The Sunday Times reveals there are 70 “active” apartment developments in suburban areas in Perth and 74 projects in the inner-city and its fringe.

Urbis says active projects are those selling off the plan, under construction or completed, but with apartments still selling.

Projects with fewer than 25 apartments are not included.

Urbis economics and market research director David Cresp said there had been a significant shift towards suburban apartment developments in the past two years.

While 72 per cent of the 22,500 apartments constructed in Perth since 1990 had been in the inner city, suburban developments now made up 42 per cent of active projects.

Mr Cresp predicted the number of suburban projects would rise in 2016 as developers targeted areas with a higher level of pent-up demand, such as the western suburbs.

The Perth apartment market is definitely young and when it started in the 1990s it was very much about the inner city. But now, as developers look for areas where there is pent-up demand, they’re turning more frequently to the suburbs.

“The Perth apartment market is definitely young and when it started in the 1990s it was very much about the inner city,” he said.

“But now, as developers look for areas where there is pent-up demand, they’re turning more frequently to the suburbs.”

Mr Cresp said the success of developments in Wellard, 37km south of the CBD, and Baldivis, 45km south of the CBD, could lead to an increase in the number of unit developments in outer suburbs.

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