Knight Frank predict steady Perth unit market: Tweet of the day
A new report from Knight Frank, shared on Twitter by associate director Michelle Ciesielski, includes a forecast that Perth’s capital growth will remain steady.
The Perth Apartments Residential Market Brief for Q3 2014 points to local and foreign developers pushing ahead with new projects in Perth, with the strongest projected population growth for all capital cities across the country.
“Three quarters of Western Australia’s population live in the capital of Perth. Over the next 30 years this population is projected by the Australian Bureau of Statistics (ABS) to rise annually by 3.5% to 4.2 million persons, far outstripping the projected annual Australian average of 1.7 percent,” writes Ciesielski in the report.
In the year to August 2014, a total of $177 million of development sites were purchased. Foreign buyers were noted as making up 25% of these sales.
When looking to building permits to July 2014, the Australian Bureau of Statistics tallied 7,036 approvals – up 24.2% on the previous year.
The strongest LGAs were as Stirling - with 1,157 approvals - Belmont and Cockburn.
However, even with strong population figures and apartment developments, Knight Frank expect a steady environment rather than strong capital growth in 2015.
They believe vacancies may trend above the 3% “market equilibrium” for the medium term due to new supply coming onto the market.