Apartment market shows positive signs
I recently attended the Property Council WA Multi Unit Conference at Crown Casino.
I attended because I was really interested in the conjecture that Perth was experiencing an oversupply of apartments. The PropertyESP team however had our doubts about this claim.
The conference opened with a presentation from David Cresp, who has undertakenrecent analysis of the Perth apartment sector. I am pleased to say that his stats were very comforting indeed!
David outlined a number of positive factors for WA’s apartment sector – including:
WA was better than the national average for employment growth rates.While WA has had some reduction in growth of late, we are still however on par with national rates.
The peak engineering spend for the WA mining sector was $42.9 billion in 2013.
Projected engineering spend is still $28 billion in 2018.These are still positive figures.
Based on population projections, the Perth CBD needs an additional 2000 homes to be built in a 5km radius per annum.This is on par with current building projections.
WA is also currently experiencing one of the highest levels of dwelling approvals as well.
Overall David concluded that there were plenty of economic and social drivers to indicate that the Perth apartment market was in fact very heathy indeed!
Finally it is great to hear some good news, based on actual facts!