02/06/2015 - 04:57

Apartments deliver on density

02/06/2015 - 04:57

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Developers are meeting the state government’s goals for high-density residential projects around major transport routes and infrastructure, new research has revealed.

Apartments deliver on density

Developers are meeting the state government’s goals for high-density residential projects around major transport routes and infrastructure, new research has revealed.

Examination of Perth’s burgeoning apartment development market by property analytics firm Y Research, in collaboration with the Urban Development Institute of Australia, showed 46 per cent of current projects were being built close to public infrastructure, including train stations, bus depots and shopping centres, or major arterial roads.

And that proportion of development is expected to increase, with nearly 54 per cent of future projects to be located in similar locations.

Y Research chief problem solver Damian Stone said the largest apartment projects with construction under way were being built in government redevelopment areas.

Projects in redevelopment areas, such as The Springs Rivervale, Cockburn Central or around Claremont Oval, typically contain 93 apartments.

However, for the future pipeline, the bigger projects will be built around public infrastructure, averaging around 147 apartments.

“We’re finally making better use of our infrastructure in future projects,” Mr Stone said.

“These projects are getting to a scale and a density where they can support convenience stores or small supermarkets, like an Aldi.

“The key about apartments is they are all about people.”

UDIA WA chief executive Debra Goostrey said governments at both the local and state level needed to focus on creating precincts to ensure density was being developed in the right locations.

“You need to be cognisant of commercial realities; you are only going to get density where it stacks up,” Ms Goostrey told Business News.

A crucial upcoming precinct, flagged under the Western Australian Planning Commission’s new structure plan for the Burswood Peninsula, will be located around Burswood Train Station.

One of the first developers to move on the area is Norup + Wilson, which is expected to launch marketing in coming months for a $100 million, 21-level, 182-apartment project on Goodwood Parade.

Burgess Rawson recently offered another development site on Goodwood Parade for sale, with the plot having received approval in April for a 134-apartment project designed by Hillam Architects.

The Burswood station precinct is expected to ultimately comprise 4,500 apartments, as well as 160,000 square metres of commercial space.

The research also found just 18.1 per cent of current projects and 16.1 per cent of future apartment buildings would be developed in secondary suburban locations.

Projects in those secondary locations, or back streets, were the most likely to come up against significant community opposition.

Ms Goostrey said a recent UDIA survey showed most people were accepting of apartment projects, as long as they were in the right places, notwithstanding the prevalence of opposition in certain locales.

“The reality is in all of our studies, anywhere there is high density going in, the surrounding land values go up,” she said.

“Particularly with the modern, fantastic architectural design that’s going around, we’re not creating ghettos, we’re far more sophisticated than that these days.

“The additional amenity and vibrancy pushes the surrounding value up.

“One day people are going to say ‘that’s great, projects are going up near us and that’s going to increase our asset’.”

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