An independent survey has revealed Perth’s inner city apartments, including those in Subiaco, are defying general market conditions and recording positive capital growth, representing a strong opportunity for astute investors, according to a leading WA property investment fund.

The survey, completed by Macroplan Australia for property investment fund Otan, analysed all inner city apartments resold since 2008 and found a median price change of 4.1%, with 75% of the total properties recording a positive growth figure.

By comparison the ABS house price index for the Perth property market showed an annual increase for the same period of 0.6% per annum.

Otan managing director Mark Butler said buyer confidence was returning to the inner city market, influenced by low unemployment rates and the strong economy.

“These figures are in line with the forecast returns we’re predicting for inner city developments including North One in Subiaco central, which will is attracting plenty of market attention,” he said.

“WA’s economy continues to gain in strength and we’re continuing to enjoy low unemployment and a shortage of workers. This has influenced demand for rental accommodation, particularly in these metropolitan hubs where residents can appreciate the lifestyle options.”

“We’re also seeing a lot of interest from workers in the CBD or fly-in-fly-out workers that are enjoying income growth and are investing in apartments as a tax concession.”

The Macroplan data concludes that of 254 apartments purchased and resold in Perth, Subiaco, Vincent, Victoria Park and South Perth, 191 apartment (or 75%) increased in price by a median of 5.8%.

Mr Butler said investing funds into a property development fund is often an uncomplicated and affordable option for those looking at capitalizing on the property market, with anticipated returns of around 20 percent per annum or greater over two to five years.

“The fund for North One is expected to be fully subscribed within weeks. This is a great opportunity for smart investors to capitalize on this strong market while retaining the option to diversify their portfolio, which may not be otherwise possible.”

North One, financed by Otan and ISTP, will be built by leading WA property and construction group Pindan.
For details on Otan’s property management funds, including North One Subiaco, visit www.otan.com.au.

NORTH ONE: A SNAPSHOT

Subiaco’s newest luxury lifestyle development North One is one of three buildings that form Centro North – a $100 million residential, cafe and commercial hub that lies just 200 metres north of Subiaco train station and is nestled between St John of God Hospital and the Subiaco Square shopping strip.

The boutique development sits at the corner of Station Street and Salvado Road and blends stylish apartments with new boutiques and high-end business space. It is the latest addition to the renowned Subi Centro project – a mecca for discerning homebuyers and investors.

It is being developed by Otan Property Funds Management and ISPT, built by Pindan, and designed by Sydney-based architect William Smart from Smart Design Studio, architects in conjunction with Hassell.

North One is comprised of 88 apartments over 4 levels, as follows:

21 Manhattan apartments (1 bedroom, 1 bathroom – studio style)
30 Subiaco apartments (1 bedroom, 1 bathroom)
3 Lifestyle apartments (2 bedroom, 1 bathroom)
25 Centro apartments (2 bedroom, 2 bathroom)
9 Prominence apartments (3 bedroom, 2 bathroom)

The apartments start from $397,500.

North One is a secure facility and features:

The overall Centro North development will feature a cafe with alfresco area in an urban plaza, and peaceful landscaped areas.

Inquiries: www.NorthOne.com.au or Matthew Smith on 0430 766 360.

MEDIA CONTACT: Tarryn Truscott, 0438 906 643, tarryn@lastsay.net.au