Perth landlords are being encouraged to leverage current market conditions that are allowing for significant increases in their rental returns, in order to create new pricing benchmarks for when the Covid-19 restrictions are scheduled to end in March 2021.
The property managers behind one of Perth’s largest apartment rental portfolios, M/Property, said that current market conditions are optimal for landlord-led negotiations, with the industry forecasting a possible 20% increase across the rental market.
They believe that while tenancy and rental freezes as a result of Covid-19 have helped to push occupancy rates to an all-time high, the impact is likely to be ongoing as the market opens up.
Kiarna Blythman from M/Property says the industry has not seen this level of activity in 14 years and believes the environment has given investors a chance to review and reset rental prices after a long period of stability.
“Instead of negotiating rents down, applicants are now offering up to $50 a week more than the asking price to secure the property they want,” she said.
“We currently have just one apartment available and eight coming onto the market with a waiting list on our database. This is in vast contrast to our typical pipeline of 20 to 30 apartments and has given us the opportunity to negotiate a new level of revenue for our owners to lock in fresh agreements that benefit the landlord.”
Based on REIWA data, the average apartment rental rates have leaped from $335 to $355 per week since the June 2020 quarter, with limited stock and increasing population effectively putting more pressure on the market.
“We are very aware that some landlords have been disadvantaged by the Covid-19 policies and have been unable to evict tenants or review rents. However, as the deadline for restrictions will soon be lifted, now is the time for landlords to take action,” Kiarna continued.
“If property owners are successful in increasing weekly rent prices in a time of extraordinary demand, there is a strong possibility their actions will help to adjust pricing benchmarks for the long term. The accelerated pace and total sum of these price shifts may be difficult to achieve when the market opens up again.”
M/Property specialises in the marketing and management of residential apartment leases and currently has a combined experience of some 50 years.
For more information visit mproperty.com.au
Construction Fast-Tracked for New Quest ApartmentsRead more
Perth-based M/Group and its construction arm, M/Construction, have delivered its second Quest Apartment project, Quest Perth Ascot, giving investors a high-profile freehold property and a long lease arrangement with the national accommodation provider.
Although construction of the 112-room apartment hotel was subjected to lengthy planning approval delay and Covid-19 regulations, it met strict building timeframes due to a new development model and building process that saw one floor completed every two weeks.
M/Group Managing Director, Mr Lloyd Clark, said the formula used on the project had been perfected in the development of Quest Joondalup several months prior, and proved critical in an environment that brought with it unexpectedly challenges.
“The M/Construction team used a building process that combined pre-cast concrete walls and a hollow core flooring structure with the integration of construction methodologies and custom-designed features. These had all been perfected during the Quest Joondalup program and, as a result, dramatically cut down construction time,” he said.
“The process allowed for up to 100 people on site at once, and the building program was meticulously coordinated and synchronised to not merely save time and maximise resources, but adhere to new Covid-19 safety regulations. It was an extremely impressive build from many perspectives.”
With concrete floors and toppings poured and cured over the weekend to create self-supporting formwork, the workspace below was obstruction-free for follow-on trades to install framing and services unencumbered.
The process effectively shaved some three to four months off the construction timeline, which meant Quest Apartments could meet their operational deadlines and M/Group could fulfil their investor commitments.
The Quest Perth Ascot project was the result of an $11.5 million development fund managed by M/Group. Its success has been instrumental in building on a commercial relationship with Quest Apartments, which was established after the previous Quest Joondalup project attracted a great deal of praise in terms of finish and quality, including a finalist nomination in the 2020 World Travel Awards.
“We have earned a high level of trust with Quest Apartments by clearly demonstrating our capacity to deliver on what would have undoubtedly been quite a challenging process for other companies,” Mr Lloyd continued.
“We hope this relationship will open many more doors in the future, not merely from an investment opportunity perspective, but for M/Construction as an independent operator.”
The main structure of Quest Perth Ascot officially commenced in January 2020 and the building was fully completed in August of the same year, equating an impressive eight-month build.
Perfect for Como DownsizersRead more
Known for its large stately homes and idyllic river-side setting, Como is undeniably one of Perth’s most enviable addresses and, over many years, has proved itself as a perfect environment for hundreds of families. However, as children grow up and leave the nest, residents have invariably been forced to look outside the suburb boundaries to accommodate downsizing.
M/26 by Match is a boutique apartment complex located in the heart of Como. It is designed specifically for people who are well-accustomed to quality living and partial to staying in an area that has served them well for decades.
Mr Lloyd Clark, Managing Director of Match parent company M/Group, said the company’s market-led design process identified a fairly significant gap in the Como marketplace. He believes the M/26 by Match apartment complex has delivered a highly sophisticated and inviting environment that is perfect for people wanting to downsize.
“We couldn’t imagine living in a suburb for most of our lives only to find it had very few home options for when it became time to downsize. The challenge for us, of course, was to create an environment that could make the transition from large home living to an apartment as simple and stress-free as possible,” Mr Clark said.
“You only have to visit the M/26 by Match display apartment to experience a standard of luxury that is unique, not merely to Como, but across Perth.”
M/26 by Match comprises just 40 stylish and well-considered apartments, most with exquisite views of the Swan River and Perth City.
It is located within a tree-lined street just minutes’ walk from the popular café strip and famous art deco Grand Cygnet Cinemas, as well as a short stroll to the Swan River and easy access to the Freeway and CBD.
“Each luxury apartment has been designed to exude elegance and sophistication, with an importance placed on space, light and airflow. Attention to detail has been paramount, as our intention was to create an atmosphere that melded into the Como environment,” Mr Clark continued.
“And while the apartments have been designed for a downsizer market, there are many other market groups, such as young professionals, who are attracted to these qualities and the proximity to Perth’s CBD.”
Internally, there are two colour schemes available; light and airy Hamptons-style and bold and moody Manhattan. All finishes are of a high quality with floorplans that allow each apartment to open up and make the most of the stunning location with full-height glazing.
“The apartments and their location have already proved to be extremely popular with residents. This has been particularly beneficial for those who opted to use their apartment as an investment. Renters just love the space and many opportunities have been snapped up after the first opening,” he said.
“As a design-focused apartment developer, it is truly a pleasure to offer such an acutely niche and beautiful property to the market. We welcome all our new residents and wish them the very best in their next stage of life.”
M/26 by Match includes one and two-bedroom apartments with large balconies, high ceilings and stunning sunscreens. The building has created a distinctive addition to Mary Street, Como, with the installation of a stunning artwork sculpture by Ayad Alqaragholli at its entry.
For more information contact www.m26apartments.com or call 0432 660 066.