Developers of smaller apartments projects across Perth say some of the state government’s recent measures to stimulate economic activity and employment in light of COVID-19 are good in theory, but may not meet expectations in practice.
Among the measures is a streamlined assessment process for ‘significant developments’, defined as those projects with an estimated cost of at least $30 million or new residential buildings proposing more than 100 dwellings.
Developer and architect Barry Baltinas hopes the approvals process for the smaller, high-end apartment projects he focuses on could also be streamlined.
“These smaller projects can get off the ground very quickly, helping to create jobs and incomes for Perth families at a time when that is very much needed,” Mr Baltinas told Business News.
“Now more than ever, buyers are putting their health and the health of their family in focus, and boutique living aligns with that.”
Baltinas’s latest project, the $19 million Habitat Residences in Applecross, recently completed construction and features 14 apartments and three penthouses.
Mr Baltinas said the lack of shared facilities at the projects had proved to be a drawcard, particularly in recent weeks.
“It not only means fewer maintenance costs, but brings fewer health implications, which is obviously top of mind for many buyers right now,” he said.
“We’re seeing more activity in the market, in particular from those downsizers who have not been greatly impacted financially by recent events.”
M/Group managing director Lloyd Clark said there had been a lot of speculation about the potential negative impact of COVID-19 on the property industry, but the company’s apartment arm Match, which mostly develops 30-40 dwellings over three to five storeys, had not adjusted its pipeline.
“Boutique product holds its value,” Mr Clark told Business News.
“It’s important to note that the apartment market is heavily impacted by continued population growth, and an emerging generation that values central urban living over the half-acre block.”
Mr Clark said this would continue to increase demand for quality product in desirable locations.
“If the government’s mandate is to stimulate the economy and fast track project development, it needs to approach all areas of the property sector equally,” he said.
“We believe it is absolutely counterproductive for the government to favour one style of dwelling over another in any capacity.
“There is a whole market sector that would never consider high-density living, so disadvantaging them with time delays does not service anyone.”
Excerpt from Business News – 22 June 2020
A Terrace Home Affair for MatchRead more
Most people know that Match has been a significant trailblazer for the Perth apartment living scene. This well-earned distinction was bestowed over two decades ago when the company founders challenged Perth’s planning code and pushed design parameters to protect our streetscapes from large unsightly ‘cookie-cutter’ apartment product.
The introduction of cutting-edge boutique apartment design into our urban environments was something many had not seen before, and the company’s ability to secure highly visible and strategic lifestyle sites made everyone sit up and notice.
Today, Match is still delivering a stunning range of apartment designs and the market is now fully aware of the benefits apartment living can provide.
So, why is the company shifting its attention to Terrace Homes?
After its enormous success in the apartment sector, Match recently stunned its followers by introducing two projects that have moved away from its recognised apartment formula.
M/31 Terrace Homes and M/32 Terrace Homes are located in Landcorp’s visionary Shoreline Precinct in North Coogee.
The two projects are idyllically positioned just metres from the coastline and, like all other Match product, are distinctive in design and layout.
Lloyd Clark, Managing Director of Match parent company, M/Group, said the new category of housing was an exciting shift for the Match design team, but was not such a huge leap in terms of the company’s design philosophy.
“Every one of Match’s projects is distinctive in many ways, because we design specifically for the location and the residents we hope to attract to it,” he said.
“There is no doubt that Perth’s perception of apartment living has changed over the years, and that more and more people are moving away from the half acre block on the fringes of the city to a more lifestyle-driven atmosphere closer to the action.
“When we secured these incredible sites at Shoreline, we saw an opportunity to give our residents an experience that sits somewhere in between.”
M/31 Terrace Homes by Match are well-appointed three-bedroom terrace homes that include open plan layouts that integrate indoor and outdoor living. Each home comes with a double carport, private and sheltered courtyard, and is architecturally designed to maximise light, space and breeze.
M/32 Terrace Homes by Match is based on a unique architectural style that uses beautifully landscaped laneways and a central lawn area to create a sense of privacy, serenity and space. The terrace homes are designed to be ultra-modern and their floorplans are spacious laid out across three stories.
“As the apartment market has evolved, so too has Match’s desire to keep meeting the demand of people who want the best out of their lives and their home environments,” he said.
“We helped to break the mould of apartment living back in the early 2000’s, now we’re looking to bring even more to the table in terms of innovation and style.”
Prices for M/31 Terrace Homes by Match start from $550,000 and M/32 Terrace Homes by Match start from $685,000.
Government Grants a Welcome Injection for Land BuyersRead more
Government incentives to buy land and build new homes has sent demand for land skyrocketing, according to Perth land developers.
“We are only weeks in from the state and federal governments’ stimulus announcement and the response has been significant,” Monument parent company M/Group Director John Wroth said. “So much so, that we expect to sell our current stock across all projects within a month.
“This is absolutely monumental. People are quickly responding to the prospect of up to almost $70,000 in incentives. Those who previously could only budget for outer-fringe areas might now be able to afford the more desirable land close to the city such as Beeliar, Piara Waters and Treeby.”
“However, this is a finite window of opportunity and I would strongly encourage anyone looking to get a foothold in the more sought-after areas to act quickly before prices adjust to demand.”
Cuttone Property Group Managing Director Phil Cuttone has also witnessed a significant growth in interest.
“We are seeing a significant spike in sales with most developers having to now consider constructing more lots to bring on new stock as quickly as possible before the December 31 grants deadline,” he said.
“The next three to four months should see titled stock being depleted across all urban areas around Perth, especially in affordable first homebuyer areas.”
“Lifestyle areas such as North Dandalup and West Pinjarra are also benefiting from land uptake where a significant increase of sales is evident.”
While this current period may be welcomed by developers, the future of the land market is dependent on a number of factors, from employment and migration growth to affordability, according to Mr Cuttone.
“Once we can look beyond the COVID-19 implications, the outlook may be positive in Western Australia compared to the eastern states, where the land prices have been at artificial highs compared to Perth which has experienced the opposite,” he said.
“I have an optimistic view of the recovery in the Perth land market for the future, anticipating that land prices will be steady for the next few years after the end of the grants, given that there is an oversupply of affordable land coming onto the market in the future.”
Mr Wroth said while land stock was being quickly bought up, buyers were spoilt for choice.
“Land buyers are certainly not starved for choice with four corridors of development and some very attractive infill land sites on the table,” he said.
“The market shake-up could have some impact on zoning, with some high-density zoned sites possibly changing to direct land subdivision.”
“However, this will all be dependent on the state and federal governments’ ability to maintain demand and stimulate the economy through the job creation, migration and improved relations with our South East Asian neighbours.”
“It is important to recognise that the property market is strong aligned to a good economy.”
The land market has been performing well recently, according to REIWA data witnessing 5049 sales for the year to March 2020, with a median price of $248,000 and 5.1 per cent change in prices for the year.
Piara Waters and Baldivis we two hotspots for land sales, witnessing 201 and 192 sales, respectively.
While the average days on the market for the land was 60, some areas like Bedford and Kinglsey witness an average of 299 and 329 days on the market, respectively.
Most areas of Perth have seen price increases, with Perth south eat witnessing a 7.1 per cent increase for the year, while the inner suburbs or Perth suffered and 10.1 per cent decrease.