Providing solid proof that the Perth property market is heating up as we move into 2021, Finbar reported an outstanding $9m in sales in a single day on January 25 atour landmark Civic Heart South Perth project.
The month of January saw $34.6 million worth of stock under contract, the highest level recorded since 2006.
After experiencing record sales levels across October, November and December 2020, it’s clear market uncertainty in the wake of COVID-19 is fast receding with sales across our development portfolio reaching near record levels.
The state’s largest residential development, Civic Heart sales have consistently performed so strongly that in November last year we announced we would bring forward the commencement of earthworks to January 2021.
Boosted by WA’s deft handling of the pandemic and the ongoing health of the WA economy at a time of global uncertainty, Perth is seeing a flood of buyers return to its property market with renewed confidence.
Many factors are contributing to this ‘perfect storm’: low supply, record low interest rates, Western Australians returning home from interstate and overseas and record low vacancy rates across Perth’s rental market.
Buyers and investors who have been waiting and watching the market are now moving, buoyed by the government stimulus measures and easing credit conditions in the wake of Covid-19, all of which has combined to generate strong buyer activity right across WA while our prices remain at affordable levels.
Strong demand for apartments at the centrally located Civic Heart development, which has recorded $88 million in sales since launch, also comes in the wake of rapidly diminishing stock levels at Finbar’s other South Perth projects.
The project, which has an estimated end value in excess of $400 million, will comprise two towers of 39 and 22 storeys respectively, providing 305 residential apartments, four penthouses and 25 ground floor commercial tenancies.
Expected to be move-in ready by mid 2023, Civic Heart, offers an exhaustive array of resident facilities including gyms, theatre rooms, meeting rooms, dog wash facilities and a solar heated pool and cabana all just minutes from the South Perth foreshore, the zoo, golf club and the popular Mends Street strip.
We expect these strong sales numbers will continue as favourable market conditions continue well into 2021 and buyers move quickly to avoid the inevitable price rises.
Recent data released by REIWA president Damian Collins, indicates that Perth's median house price is expected to rise by between 6 and 10 per cent during 2021, the strongest growth predicted for any capital city.
Buyers are also moving fast to cash-in on the state government’s 75 per cent stamp duty rebate for off-the-plan apartments which is currently set to expire in October 2021. However, we urge the WA Government to reintroduce the stamp duty rebate for developments under construction to ensure the ongoing recovery of the local market.
The Civic Heart project is expected to create thousands of direct and indirect jobs for Western Australians during construction and post completion and will create a vibrant residential and commercial precinct that will include restaurants, shops and extensive public amenities.