Apartment sales in the affluent western suburbs of Perth’s so-called Golden Triangle have taken off, with one suburb in particular attracting a disproportionate amount of interest and providing significant potential for capital growth.
Extending from the port town of Fremantle, northeast along the…
Apartment sales in the affluent western suburbs of Perth’s so-called Golden Triangle have taken off, with one suburb in particular attracting a disproportionate amount of interest and providing significant potential for capital growth.
Extending from the port town of Fremantle, northeast along the Swan River to Perth city and west back to Scarborough Beach, a mini-boom was taking place in the triangulated suburbs of aspiration.
Among these highly sought after suburbs, the leafy village suburb of Claremont has maintained a premium price point in comparison to neighbouring Subiaco, Floreat, Jolimont and Shenton Park.
The transition that has driven this demand has centred around major luxury apartment projects that are now mostly complete and complementing the discreet character homes, grand statement dwellings and smaller townhouses for which the area is known.
Analysis of 593 settled apartment sales from January 2017 to April 2020 by PropertyESP has shown that Claremont represented just over half of the total sales for that period, and demonstrated an $80,000 - $100,000 premium over neighbouring Subiaco, regardless of apartment size.
Claremont has since 1905 been synonymous with the home of the Tigers, an Aussie Rules football club in the WAFL competition.
Apartment developments around the perimeter of the famous old ground have rendered it unrecognisable from its earlier incarnation, but have also given it back its roar.
Developers active at Claremont Oval include ASX-listed Mirvac, which has delivered a pair of buildings at the precinct, and Perth’s leading privately-owned apartment developer Blackburne, which is following up its Essence development at the oval with a new project, Claremont by Blackburne, to be located on the nearby Stirling Highway.
Local boutique developers Georgiou Group, Iris Residential and Celsius Property Group also lay claim to significant apartment projects around Claremont Oval.
Director of both PropertyESP and the not-for-profit WA Apartment Advocacy , Samantha Reece, said half of all the three-bed two-bath property sales in the western suburbs could also be attributed to Claremont.
“Since 2017, Claremont has also seen a 2.7 per cent increase in median price, demonstrating that premium suburbs are tending to defy the overall Perth trends and appreciate in value,” Ms Reece said.
“There is no doubt the development around Claremont Oval and the additional amenities that have been provided have had a significant influence on property values.
“What was interesting to note was that developments in these areas that also offered cafés and roof top terraces demanded a further premium, and this is purely linked to lifestyle and convenience.”
A report by commercial real estate multinational JLL in May stated that only 800 apartments were being delivered to the Perth market in 2020 - half that of 2019 – followed by a mere 380 in 2021.
“It is clear demand is going to exceed supply and with vacancy rates down to 2.2 per cent I foresee apartment prices, especially in premium suburbs like Claremont, experiencing growth,” Ms Reece said.
Size matters
Celsius Property managing director Richard Pappas, whose project Lucent Claremont is a boutique development of just 40 of the largest apartments in the precinct, said local downsizers were the driving force behind the local market.
“Our downsizer market in Perth is around 50 per cent but is above 80 per cent in the Lucent Claremont apartment project,” he said.
“Smaller one and two bedroom apartment product appears to have been slower to sell while premium sized apartments three bedroom stock is all taken up.”
Property ESP data backed this up, with three bedroom apartments commanding a 45 per cent premium over two bedroom apartments overall.
Ms Reece said the oval precinct offered a seniors village as well as home-care service providers, so the apartments have been designed specifically for aging in place.
“Typically, the western suburbs are dominated by large standalone family homes and hence there is a strong demand from local residents to downsize to stay in their beloved neighbourhood.”
Property development listings site Urban.com.au identifies no fewer than 24 property developments in Claremont and its nearby neighbouring suburbs
Investors are also being lured by healthy rent yields of 4 per cent in Claremont and 4.5 per cent in Shenton Park and Subiaco.
Penthouse apartments were in demand with overseas buyers, corporate couples, downsizers or families with older children still living at home.
Blackburne managing director Paul Blackburne said there was a growing market for luxurious penthouses in Western Australia, with most demand in the western suburbs where there is so little supply and strong demand.
