Bibra Lake, Kardinya, Willetton, Padbury, Duncraig, Woodlands and Fremantle apartments ought outperform the Perth market: HTW

Building activity in the apartment market is up on the back of what was, until recently, a healthy set of numbers, according to Herron Todd White.

And the feeling is good.

‘’More tradesmen released from fly-in fly-out duties returning to work in the Perth market has helped pull down construction prices and make some projects viable,’’ the valuer says.

‘’Developers are rushing to meet the demand for apartments, especially in the sub-$750,000 space, and developments from central Perth to far flung southern suburbs are on the market.’’

The valuer says that, when comparing apples with apples, valuers often can’t see what all the fuss is about with apartments.

‘’We see far more value in something with some physical land attached to it, rather than something that is all about air rights. In fact, we see it day in day out and it doesn’t make sense.

‘’Take, for instance, a new three-bedroom, two-bathroom detached brick and tile house on a cottage lot of circa 350 metres squared selling for the same price as a two-bedroom, two-bathroom unit in the same outer suburban area ...

‘’Unless, of course, the apartment is on top of vibrant retail shopping, bars, restaurants and a train station - which, more often than not, it isn’t.’’

The valuer says that, with more developer activity comes more stock – an increase in supply - right about the time when everyone is beginning to react to a cyclical fall in demand.

‘’So, expect to see some pain in the residential apartment market in about 12 to 18 months time.’’

Is it all bad? ‘’No’’, says the valuer. ‘’Western Australia is still the best state in Australia in which to live and, because we haven’t gone too hell for leather with development projects, we should fare better than most. Again.’’

There will always be pockets and properties which outperform market expectations - whether in a flat market or a good one. So, keep an eye on suburbs such as Bibra Lake, Kardinya, Willetton, Padbury, Duncraig, Woodlands and Fremantle, the report said.

Herron Todd White says buyers should focus on lot sizes, proximity to schools, transport linkages to the CBD or other places of work and recreation.

‘’If the house is a mess, buy a paint brush and invest some time and effort. Turn that little ugly duckling into a swan. Who knows, one day you might make some money on your property. Sometime... Down the track...

‘’Just relax Australia. Western Australia has got your back. We may be a bit tired, but we’ll take a short break and be back on top again soon,’’ the HTW reported concluded.

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