Not so many years ago, almost no one lived in Perth’s central city area. By 6pm the office workers had gone home and the streets were empty. Not so any more. Perth’s central areas — including the CBD, East Perth, West Perth and Northbridge — are now home to thousands of West Australians who enjoy all the lifestyle advantages offered by apartment living in the thriving inner city.
Take East Perth, for example. What was once a place of quiet government offices that people drove past as they came off the Causeway and visited only when they went to the cricket or the trots has become one of Perth’s most desirable places to live.
Over the past 15 years, hundreds of luxury apartments have been built along Adelaide Terrace — part of Perth’s premier street. Thousands have moved into the inner city to live close to the city, the Swan River and the parks that snake around the foreshore. It is home to — or close to — some of the city’s best restaurants, bars and cafes.
Demand in East Perth is always high
Demand for East Perth properties has been high, and it is only going to increase as major attractions are developed in the immediate vicinity. The State Government-led Waterbank Precinct and Riverside redevelopment will become important playgrounds for the people of Perth in the coming years, while the area will be a short walk across the soon-to-be-built pedestrian bridge over the river to the new Perth Stadium and the popular Crown Casino.
It has made East Perth not just a desirable place to live but also an excellent investment opportunity. Take the average capital returns figures over the past 20 years for example. According to a study by RPS, property in East Perth has offered a 9.4 per cent average return to investors. Compare that to Northbridge at 4.1 per cent, 5.9 per cent in South Perth and 7.5 per cent in Subiaco.
Rental incomes and capital gains are solid
The rental returns are also solid. As of January 2016, the gross rental yields of properties in East Perth is 4.7 per cent — higher than the Perth metropolitan average of 4.5 per cent and much higher than the yields in either Sydney (four per cent) or Melbourne (4.2 per cent). The median rent is $550 a week.
With property industry experts reporting Perth’s housing prices have started to improve after a sluggish couple of years, smart investors will be looking to add to their portfolio soon before prices really take off.
In November a report by research firm Y Research showed there were 3500 new apartments due for completion in the Perth metropolitan area in 2016. Y Research found that both the apartment vacancy rate and the number of apartments available for sale were falling — against the trend of vacancy rates and listings across the wider property market. If the trend continues, that’s only going to put upward pressure on prices.
If you’re keen to invest in an apartment, check out Vue Tower — Finbar’s 32-storey residential development on Adelaide Terrace in East Perth.