Be wise in choice of in­vest­ment

Western Suburbs Weekly - - Liftout: News - Keren Bel­los

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 un­prece­dented multi-bil­lion dol­lar splurge on apart­ments, ho­tels and shop­ping cen­tres that could drive prop­erty prices.

The pipe­line of 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. ■

Above: An artist's im­pres­sion of En­clave Apart­ments in East Perth. Left: Mir­vac’s The Grand­stand in Clare­mont.

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