Development of Australand’s $2 billion Port Coogee development has been reinvigorated by increased sales, $40 million of infrastructure investment and two commercial buildings on the waterfront.
The 400-square metre and 300sqm buildings will cost Australand $7 million and will house a cafe, marine services office and a short-term sales office for Australand.
Port Coogee’s marina services will be based out of the smaller building, which will cost Australand $3 million to build.
The 300sqm building will include marina fuel facilities, public toilets and minor landscaping.
Australand also intends to operate its sales office out of the marina services building until 2016. It will then hand the building over to Cockburn City Council as part of the development contract.
The cafe will be in the larger building.
Australand general manager residential for WA, Tony Perrin, said the development had struggled because of the GFC.
Mr Perrin said sales had been more promising this year, with a more stable, less sporadic selling environment.
“We’ve been selling land at all different price points from $400,000 to $1.8 million,” he said.
Mr Perrin said Australand invested $40 million into hard infrastructure at the development last year and that this had helped create more reliable sales activity. “We’ve been able to stabilise prices and the price is at a level where the market is now accepting the list price,” he said.
Sales in the first half of the year had been strong, while the last couple months had experienced a slowdown. About half of the land has been sold.
Australand had 10 blocks on the marina waterfront and these have been averaging selling prices of about $1.8 million.
Australand is responsible for the first 150 boat pens in the marina, which can be expanded to cater for up to 300.
The company has completed 139 pens and only three are left on the market.
Construction of the pens has cost approximately $3.15 million and construction of the second 150 pens is Cockburn council’s responsibility.
Other projects in the area include TRG Properties unit development. TRG has a $35 million deal with Diploma to build its 101-unit Ocean Edge Apartment, located on the waterfront on the northern edge of Coogee beach. The Match Group also has a 34-unit apartment planned for the area.
Australand started development at the 85-hectare marina and residential development in 2006. Once completed it will have a 300-berth marina, 1,100 apartments and 12,000sqm of retail space.