The deal includes a $695 million dollar investment by the Commonwealth Government, State Government and Edith Cowan University to move its law and business schools, along with the Western Australian Academy of Performing Arts into the CBD.
The plan to bring these campuses into the CBD will not only attract an anticipated 9,200 students and staff on day one; it will bring a new dynamic to the CBD and as a consequent of that, attract people, private investment, activity, and revenue for small businesses.
John Percudani, Managing Director of Realmark commented that this plan is exactly what CBD needs to reinvigorate the city centre to be a thriving, 24/7 metropolis. The renewed activity is likely to have a positive impact on median residential values for the area and potentially increase long-term investor participation.
“Over recent years, the CBD has seen a significant decline in residential property values, however more recently it’s been a more appealing value proposition for investors due to healthier yields and reduced vacancies,” said John.
“We expect this project to attract an influx of new residents absorbing the residual supply which has been somewhat dormant following Perth’s mining slowdown. Together with expected heightened tenant demand and strengthening values, we expect there will be increased investor participation in the area."
The plan will also feed the developer appetite, with an expected increase in mixed-use development demand.
“We anticipate the next phase of inner-city development will be focused on catering for people who really want to live in the CBD long-term. Initially we suspect it will be students, and the flow on effect of a more diverse residency attraction,” said John.
It’s expected there will be a mix of affordable, liveable student housing with shared facilities, and premium inner-urban accommodation.
With an expected increase in demand and new quality stock coming to market, the CBD should present a more secure and rewarding environment for investors to participate in.
John commented that although he has positive sentiment at this time, there are reasons to be cautiously optimistic, and to move forward with a trusted property advisor to help you acquire new investment opportunities.