INVESTORS wanting to profit from Perth’s private infrastructure spending spree have been urged to choose residential property wisely.
In its Perth Private Infrastructure 2017 report, property investment consultancy Momentum Wealth reminded investors to target areas with projects set to deliver tangible community benefits while highlighting the state’s unprecedented multi-billion-dollar splurge on apartments, hotels and shopping centres that could drive property prices.
Projects under construction or committed to include 15 major hotels featuring 2631 rooms, more than 40 large-scale apartment developments and $4 billion upgrades to metropolitan shopping centres.
Get in front of tomorrow's news for FREE
Journalism for the curious Australian across politics, business, culture and opinion.
READ NOWMomentum Wealth managing director Damian Collins said investors who acted early were likely to benefit most from the building boom as long as they were vigilant with their buying decisions.
“Although some of these apartment, hotel and shopping centre projects have started, the report shows that the large majority of works are still ahead of us and will be completed over the next two to four years,” he said.
“While these developments will create tens of thousands of jobs and buoy the Perth economy in the coming years, many of these projects will also enhance amenity in local communities, which will help to drive demand and prices for nearby housing.”
Many shopping centre expansions included main-street dining and leisure precincts to ensure activity and vibrancy in the area after dark, while some suburban apartment projects included ground-floor cafe and retailers serving the community.
In comparison, hotel developments were typically limited to the Perth CBD and would help stimulate the local economy by creating jobs, but would not have a direct impact on property markets.
“Investors should focus on metropolitan apartment and shopping centre developments that deliver more tangible benefits to local communities by way of new cafes, shops, restaurants and cinemas,” Mr Collins said.
Apartments that were part of a larger activity centre also presented good investment opportunities.
Mr Collins said while private infrastructure projects could help drive future residential property prices, investors should also consider other factors such as demand and supply, demographic shifts and changing structure plans.
“For example, houses on large blocks are set to outperform apartments in many of these areas given a lot of these infrastructure projects include significant apartment developments, which will add to supply of these types of properties in the area,” he said.
Major shopping centre projects
Shopping Centre – Existing sq m – Expansion sq m – New total sq m – Estimated Completion – Cost
Morley Galleria – 73,000 – 50,000 – 128,000 – 2031 – $800 million
Garden City – 72,221 – 48,000 – 120,221 – 2020 – $725 million
Karrinyup – 59,715 – 53,825 – 113,000 – 2020 – $500 million
Westfield Carousel – 82,338 – 27662 – 110,000- 2018 – $350 million
Westfield Whitford City – 77,787 – 27,000 – 103,985 – 2019 – $450 million
Westfield Innaloo – 51,300 – 62,750 – 99,000 – 2019 – $600 million
Midland Gate – 57,580 – 11,500 – 69,000 – 2019 – $100 million
Mandurah Forum – 34,859 – 24,000 – 58,859 – 2018 – $350 million
Perth Airport DFO – 0 – 24,000 – 24,000 – 2018 – $145 million
Major apartment projects
Apartment Name – Suburb – No. of Apartments – Developer – Status – Expected Completion
West Hamptons Apartments – Alkimos – 68 – Peet – Presales
Sixty Flourish Apartments – Atwell – 59 – BGC Development – Presales – Mid 2018
Chase Apartments – Belmont – 244 – Finbar – Presales
The Crest – Burswood – 182 – Norup + Wilson – Presales
Hawthorne Green – Burswood – 146 – SKS Group – Presales – Late 2019
Momentum Apartments – Cannington – 112 – River Developments – Construction – Late 2017
Park Avenue – Churchlands – 98 – Psaros Construction – Late 2017
Essence – Claremont – 143 – Blackburne – Presales – Late 2019
The Grandstand – Claremont – 142 – Mirvac – Presales
The Reserve – Claremont – 92 – Mirvac – Presales
Harmony Apartments – Cockburn Central – 77 – Harvest Property – Construction – Late 2017
Waterbank (Building J) – East Perth – 269 – Lendlease – Presales – Mid 2018
Vue Tower – East Perth – 247 – Finbar – Presales
Concerto – East Perth – 226 – Finbar – Construction – Mid 2017
9 Tully – East Perth – 79 – LKD Development Group – Presales
East Bank – East Perth – 70 – Psaros – Presales
Enclave Apartments – East Perth – 69 – Blackburne – Presales
Clique Apartments – East Perth – 65 – Reef Projects – Presales – Mid 2018
Stirling Cross Apartments – Innaloo – 154 – Fini Group Construction – Late 2017
Arthouse Apartments – Joondalup – 194 – Edge Visionary Living – Presales – Late 2018
Red Castle – Lathlain – 141 – Handle Property Group – Construction – Mid 2017
The Precinct – Mount Pleasant – 192 – Norup + Wilson – Presales – Mid 2019
Cirque Apartments – Mount Pleasant – 109 – Stirling Capital – Construction – Early 2019
Marina Edge – North Coogee – 109 – TRG Properties – Construction
Barque Marina Development – North Coogee – 52 Stirling Capital – Construction – Mid 2018
Latitude Leighton Beach – North Fremantle – 109 – Mirvac Construction – Late 2017
NV Apartments – Perth – 401 – Fragrance Group Limited – Presales – Late 2019
The Towers – Perth – 379 – Far East Consortium – Construction – Early 2019
One Hundred & Eight – Perth – 184 – Stirling Capital – Presales – Mid 2018
Nspire 108 – Perth – 184 – Zone Q – Presales – Mid 2018
Verdant – Perth – 136 – Stirling Capital – Presales – Early 2018
Oracle – Perth – 132 – Blackburne – Construction – Late 2017
The Bottleyard – Perth – 125 – Handle Property Group – Construction – Late 2017
Vantage Apartments – Rivervale – 212 – Edge Visionary Living – Presales
Affinity – Rivervale – 147 – Dragon Century – Presales – Early 2018
Parallel – Rivervale – 123 – Laudis Developments – Presales
Azure – Rockingham – 90 – Blackburne – Presales
Sundance – Scarborough – 100 – Psaros – Construction – Late 2017
Aurelia – South Perth – 118 – Finbar – Construction – Mid 2018
Lumiere – South Perth – 91 – Edge Visionary Living – Presales
One Richardson – South Perth – 75 – Devwest Construction – Late 2018
Botanical – Subiaco – 82 – Edge Visionary Living – Presales
Vita – West Leederville – 64 – Georgiou Developments – Presales
Aire – West Perth – 177 Finbar – Presales – Late 2018
Major hotels under construction or committed to
Project name – Total # of Rooms – Expected Opening date – Address
Tribe Hotel – West Perth – 126 – 2017 – 4 Walker Avenue, West Perth
Double Tree by Hilton – Northbridge – 206 – 2017 – 100 James Street, Northbridge
The Melbourne Hotel(B) – 40 – 2017 – 942 Hay Street, Perth
Be.Fremantle (A) (B) – 48 – 2017 – 15 Bannister Street, Fremantle
Quest Midland(A) – 106- 2017 – 19 The Crescent, Midland
QT Hotel Perth – 184 – 2018 – 141 Murray Street, Perth
The Westin Perth – 368 – 2018 – 480 Hay Street, Perth
Double Tree by Hilton Waterfront – 229 – 2018 – 351 Riverside Drive, Perth
Ritz Carlton Elizabeth Quay – 204 – 2018 – The Esplanade, Perth
Park Regis Subiaco – 168 – 2018 – 500 Hay Street, Subiaco
Quest Innaloo(A) – 80 – 2018 – 1 Sunray Drive, Innaloo
EQ West Hotel (AAIG & Fini Group) – 370 – 2019 – Elizabeth Quay
Hilton Hampton – 146 – 2019 – Corner of Point Street and Adelaide Street, Fremantle
Comfort Inn Bel Eyre(B) – 106 – 2019 – 285 Great Eastern Highway, Belmont
Dorsett Hotel Perth – 250 – 2020 – Perth City Link
(A) Serviced apartments are included in the pipeline.
(B) Redevelopments are included in the pipeline. The number of rooms represents additional rooms added to the hotel during redevelopment/refurbishment.
Source: Tourism WA
Source: Perth Private Infrastructure 2017 report