Be wise in choice of investment
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.