In the aftermath of Western Australia’s mining construction boom, a different type of building surge is about to unfold that presents lucrative opportunities for Perth property investors.

Perth is on the cusp of a substantial private infrastructure surge with billions of dollars of investment in hotels, apartments and shopping centres about to kick off, according to a new research report from property investment advisor Momentum Wealth.

The research report outlines Perth’s large pipeline of projects either under construction or committed to including 15 major hotels featuring 2,631 rooms; more than 40 large-scale apartment projects; and $4 billion worth of upgrades to metropolitan shopping centres.

Momentum Wealth managing director Damian Collins said the pending private infrastructure investment would present lucrative opportunities for property investors.

“While these developments will create tens of thousands of jobs and buoy the Perth economy in the coming years, many of these projects will also enhance amenity in local communities, which will help to drive demand and prices for nearby housing,” Mr Collins said.

“Although some of these apartment, hotel and shopping centre projects have started, the research report shows that the large majority of works are still ahead of us and will be completed over the next 2-4 years,” he said. 

“So those investors who can act early and take advantage of this private infrastructure spending spree are likely to benefit most.”

Property investors need to target projects with tangible benefits

While the Momentum Wealth report, Perth Private Infrastructure 2017, details the unprecedented building boom ahead, Mr Collins said investors need to be vigilant when making their investment decisions.

“Hotel developments are typically limited to the Perth CBD, and while they will help stimulate the local economy by creating jobs these projects won’t have a direct impact on property markets,” Mr Collins said.

“Instead, the research report explains that investors should focus on metropolitan apartment and shopping centre developments that deliver more tangible benefits to local communities by way of new cafés, shops, restaurants and cinemas.”

For example, the research report highlights that many shopping centre expansions include main-street dining and leisure precincts to ensure the areas remain activated after 5pm while some suburban apartment projects include café and retail offerings at the ground floor that are open to the local community.

“New amenities that come with these projects will help buoy values of nearby housing as more people want to live in these areas,” Mr Collins said. “It is these types of projects that investors need to consider when buying their next investment property.”

Investment pipeline evidence of high confidence

The large investment pipeline shows the high confidence that local, national and international hoteliers, developers and shopping centre operators have in the long-term outlook for Perth.

“Two shopping centre operators are each about to start $1 billion worth of upgrades to their Perth operations, which is significant to say the least,” Mr Collins said. 

“The surge in apartment, hotel and shopping centre investment is a result of changes in WA government policy, including lifting caps on the maximum sizes of shopping centres and a greater focus on tourism to diversify the state economy,  as well as a greater acceptance of higher-density living.”

“While private infrastructure projects can help drive future residential property prices, investors also need to consider other factors such as demand and supply, demographic shifts and changing structure plans, for example,” Mr Collins said.

Read more about Perth real estate:

Pace of decline in Perth property prices steadied in June quarter

Sales activity on the rise in Perth

New York-style warehouse apartment in Perth CBD