Apartments in the Perth CBD are holding their value, according to analysis by PropertyESP.

1,915 apartment sales were analysed, with 46 per cent of them were in East Perth and 28 per cent in Perth CBD, with 690 sales settled in 2017, 662 in 2018 and 559 in 2019. 

Samantha Reece Director of PropertyESP stated that 42 per cent of the apartment sales were 2 bed/2bath and 21 per cent were 1 bedroom.  

At a Glance:

• Analysis of 1,915 apartment sales showed these properties were holding their value
• Median prices were 1-bed $355,000, 2-bed $520,000 and 3-bed $838,000
• 2019 apartment survey found 42 per cent of 1100 respondents would seek to purchase their next apartment in the Perth CBD

The key identifying trait of the CBD properties was their ability to retain their values consistently over the three-year period, with 1 and 2 bed apartments also showing an uptick in median prices in the last 12 months. 

“With one bedroom apartments the median price was $355,000, 2 bed/2 bath $520,000 and 3 bed $838,000, the Perth CBD also represents one of the most affordable cities in Australia,” said Ms Reece.

“If you were considering Sydney or Melbourne you could be paying up to $1 million for a one bedroom apartment, hence the Perth CBD represents excellent value for investors who are looking for long term returns. 

“Furthermore JLL’s May report indicated that only 800 apartments would be delivered in the Perth market in 2020, half that of 2019, and only 380 in 2021 demonstrating that demand will exceed supply in the short term.” 

Perth LGA apartments were also tightly held by owners with only 31 resales in the three-year period. 

Ms Reece stated the CBD had grown in attraction over the last few years with the introduction of Yagan Square, Raine Square and Optus Stadium to name a few. 

“The 2019 apartment survey conducted by WA Apartment Advocacy (WAAA) found that 42 per cent of the 1100 respondents would seek to purchase their next apartment in the Perth CBD,” said Ms Reece.

“These respondents were predominantly working households with 78 per cent classified as professionals or managers. 

“There is no doubt the Perth CBD is on the same trajectory as our Eastern States counterparts and hence the inner-city population will grow as will the apartment sector, to accommodate this demand. 

“With so many buyers concerned that apartments may not sustain their values, this data provides much needed assurity that if you buy in a great location, property prices will ultimately be sustained.” 

The data also demonstrated current rental yields of 4.8 per cent and vacancy rates at 2.2 per cent, reflecting an excellent market for investors. 

In June the WA State Government released an additional stamp duty rebate which provided $25,000 for buyers purchasing an apartment under construction.  

This was also open to FIFO workers seeking to settle in WA.  

This second wave of rebates complements the existing rebate of up to 75 per cent or $50,000 on apartments selling off the plan. 

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