Apartment sales defy rise in interest rates

PROPERTY investors have responded positively to Condor Project’s apartment project, Condor Tower, located at 22 St Georges Terrace.

Condor Projects, the developer of Manhattan Towers, recently held a pre-launch of the third low-rise tower, called Garden Courts, in its 182-apartment project.

About 500 people visited the site over that first weekend and initial sales figures indicate 45 sales were achieved. 

Prior to the pre-launch of Garden Courts, 80 per cent of the apartments available in both the 25-storey north tower and nine-storey south tower had been pre-sold.

The sales success of the Condor Tower development signals the Perth apartment market is still thriving despite the recent interest rate increase.

Condor Projects director Lindsay Albonico said the sales results showed resilience in the market and indicated that more Perth residents were considering apartment living.

The company’s pre-launch was aimed at gauging the strength of the market and Mr Albonico said he was pleased with the number of visitors to the sales office and the number of people who bought apartments.

He said the weekend’s success was a result of the product’s realistic price, the overall quality of the apartment design, and market demand.

“There aren’t a lot of apartments for sale at the moment, contrary to popular belief,” Mr Albonico said.

He said the site was a significant address and that few such development opportunities were left between Barrack Street and Victoria Street.

Condor purchased the 1960s-built office building from Hong Kong investors Nan Lee Hu and Cheng Ngok Chou earlier this year for around $10 million.

Apartment developer Finbar has a number of developments in the eastern end of the CBD and will soon roll out its first release Cosmopolitan development, located at 269 Hay Street.

Finbar managing director John Chan said the 63-apartment development would feature a range of one, two and three-bedroom apartments at prices between $199,000 and $400,000.

Limited by heritage constraints, Finbar recently sold one of its development sites – 257 Adelaide Terrace – which it had purchased in May this year as part of the 132 Terrace Road site. The development company originally planned to build serviced apartments on the site.

Finbar is currently waiting on the City of Perth to deliberate on its development application for 132 Terrace Road, which comprises of an 18-storey tower housing 120 apartments.

Mr Chan said the apartment market in Perth was growing, not shrinking.

“The fact that interest rates have gone up hasn’t affected investors, but rather improved the pool of buyers,” he said.

Mr Chan was concerned that the controversial Westpoint development on the Emu Brewery site would affect the apartment market if it were released too quickly. He said the plentiful supply of development land in Perth made overdevelopment of sites unnecessary.

“It is a huge development aimed at the investor market, we need to be aware not to create a high rise slum,” Mr Chan said.