Is there an apartment bubble in Perth?
We are hearing all kinds of commentary about an oversupply of apartments within Perth CBD - but recent research conducted by PropertyESP indicates that if you build - they will buy.
Looking at sales data across a variety of infill sites including East Perth, Rivervale, Victoria Park and North Perth from 1/10/12 - 1/10/14 we were able to determine that there there were 900 apartment sales in this period.
This demonstrates a relatively strong market with in fact a large portion of these buyers being recorded as living overseas in the 2011 census.
What's more these buyers were paying more overall to purchase their homes than if they were to purchase in a greenfield suburb.
The data has therefore shown that there are two very different buyer groups purchasing in infill versus greenfield suburbs.