The rising population in inner city property inwill prompt market interest over the next two decades with the latest population projections showing the number of people in the inner city will surge by nearly 60 per cent over the period.
Blogger: Irene Limnios, managing director, Limnios Property Group
It is estimated that the population of inner city Perth will jump to more than 35,000 people by 2036, making the area a vibrant place to live.
Major factors that will encourage the boom in inner city population over the next two decades include urban sprawl which makes living closer to the CBD more attractive due cost and time savings in commuting.
Already Perth is geographically one of the largest cities in the world. For example, out of 1,008 cities in the world, Perth has been ranked 59th largest in geographic size according to the 2015 edition of Demographia World Urban Areas.
Demographia World Urban Areas is the only annually published inventory of urban areas with a population of more than 500,000.
These world rankings show that Perth is just behind London in geographic size (10 million population) and Manila (24 million population) even though our city has only a fraction of these population sizes.
Apart of commuting issues, the inner city is attracting more people as a place to live because of improving social infrastructure that will increase due to the major new investment such as the City Link and Perth Foreshore developments.
In particular, there are very exceptional investment opportunities in the inner city apartment market at the moment.
Property prices are now very competitive and it is only a question of time before they rebound on the back of rising population figures.
Tips for anyone considering buying an apartment for investment purposes:
- Check the track record of the developer to determine the quality of their work if you are buying off-the-plan. Also check the exact internal floor space of the apartment. The price of the apartment should be measured in the cost per square metre and this will give you a good comparison compared to similar apartments in the same area.
- Before purchasing an apartment, check the average weekly rent for a similar apartment in the same location. This will give you an indication of future rental returns.
- Check the quarterly strata fees and if there are any plans to upgrade the complex.
- Check how many apartments in the complex are owner-occupiers. Owner-occupiers tend to take a much more active interest in the upkeep of the complex. If more than 50 per cent of the apartments are owned by owner-occupiers then the complex should be well maintained.
- The views that the apartment can offer is important. If you are buying an apartment with good views, check that nothing in the future will interfere with these views, ie the construction of a new building in front of your apartment.
- Parking is also important when buying an apartment. Check that your apartment has a dedicated car bay and the ownership structure of car bays in the complex.
- Obtain finance approval before making an offer on an apartment as this will increase your negotiation position.
- Remember that if you are buying an older apartment for renovation purposes, you may have to obtain approval from the other owners for certain improvements, ie the installation of air conditioning.
About the Blogger
Limnnios Property Group has specialised in the inner city Perth property market for over 40 years. During this period, Limnios Property Group has emerged as one of the most progressive and innovative real estate companies assisting both developers and property investors to achieve their goals through highly professional advice backed by an unparalleled depth of experience in the inner city market. More information about the services offered by Limnios Property Group can be found at limnios.com.au