I bought this 3 BR apartment in New Developed East Perth 1.5 year ago. I really love this area, it is close to city, close to river and parks yet its in a quite area with no major trafic going through.
but from invetment point of view, I wonder if I have made the right decision to buy into this area? since the prices of apartments and town houses are so pricy already , I don’t know if there is growth potential left [blink]
If you come to the conclusion that it was the wrong decision, can you sell for a gain ?
What is the current market value of your apartment compared to what you paid for it?
What was the purpose of the purchase in the first place…was it purely for investment to rent out, or did you have ideas of living there yourself at a later date ?Prices may already be high, but that does not mean they won’t go higher.
East Perth has recorded senastional growth over the last few years.
As long as there is not a glut of new and vacant apartments on the market, you should do fine, as there is a scarcity factor with East Perth ( limited land bounded by natural boundries ) as is the case with South Perth peninsula.kp
Hi
I’ve been going through a similar exercise re: East Perth, and for what its worth my thoughts are as follows:
1 – As a place to live as an owner occupier its great – especially as the free CAT now extends there-ish so CBD is a jump away. As an inner city lifestyle option it works well for owner occupiers. Personally I find it a bit legoland, and prefer the grunge of Leederville or Highgate, but its a great place to live if you work in the city.
2 – But as an investment you have to focus on the fact you have a product that is being sold to a specific market, and you have to 1) understand that market and 2) see what similar products there are for that market, and this is where this starts to look not so good as an investment as:
3 – The East Perth product – boutiquey urban designed apartments for style conscious younger affluent renters – is now available in lots of inner and near city locations: Subi, Beaufort St, West Perth, West Leederville etc. Also there are a ton of apartments coming on at the Eastern end of Adelaide Terrace (not East Perth but in the orbit for renters). The scarcity factor in East Perth is declining (NB – but hang on: if you have water views, big wrap around balcony, huge rooms etc., then you have a winner. But if its just a box, no doubt a beautiful box, then you have some competition you didnt have a year ago).
4 – The East Perth market – few families, few boomers, young-ish but affluent city workers and very important: mining boom related 2month – 6month white collar blow-ins – has a little more choice than they had before. Especially the last segment. If the Perth mining boom continues then they will be there and we all get rich and fat. If it ends then East Perth and all the serviced apartments from Hay St – Mount St will be very empty. And not a lot around to to take up the slack. Especially if all the serviced apartments in West Perth come on stream.
So – my thoughts are that there is nothing wrong with East Perth, I dont think it will have any price wobbles (some of the new build off the plan is slow though). But you have to decide if you – and your potential renters – would be tempted away to new build in other areas that offer the same lifestyle as East Perth, even though they are miles away.
I think they might.So if you have a unique apartment you can compete easily, if not then you are probably going to compete on price. There are some great yields in East Perth right now – I can’t see these going anywhere but down for a while.
Regards
J
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