Get set for more cranes
THE many builders and construction vehicles in the Perth CBD and suburbs are not going anywhere in a hurry.
THE many builders and construction vehicles in the Perth CBD and suburbs are not going anywhere in a hurry.
There are a significant number of apartment developments approved to begin construction or proposed for areas in and around Perth in the next four years, at least.
And there is growing demand to suggest more could be on the way.
As required office space is being developed for the multinational companies that are setting up in Perth to make the most of the rich mining and resources sector, the need to find somewhere for their executives to live is becoming increasingly difficult.
Development of accommodation options in Perth has been far less in recent years than it should have been and we are going to spend the next few years playing catch-up, according to industry analysts.
While 4500 units are proposed in the next four years, only 1100 are under construction.
Nearly 900 units under construction in and around Perth will be delivered this year with about 100 approved to start this year and a small number proposed.
According to market research companies Cordell Connect and MacroPlan Dimasi, we can expect a massive shift in those proportions in the next few years as those apartments under construction come on the market.
In 2015, more than 1000 units are proposed to start in and around Perth, but none is expected to be delivered that year.
Basic economic rules of supply and demand will then come into play.
The MacroPlan Dimasi report predicts that the lack of supply of units in Perth's CBD will drive rents up in the area over the next few years.
It is projected that one-bedroom apartments in the area, presently fetching median rents of about $400 a week, will demand about $460 a week by 2013.