Perth’s private infrastructure spending boom brings residential property investment opportunities

An artist's impression of The Crest Burswood.
An artist's impression of The Crest Burswood.

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.

Momentum 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