Mining may dominate but there are plenty of other players in West Perth.
Mining may dominate but there are plenty of other players in West Perth.
One sector with a considerable presence there is advertising. West Perth is home to seven of the state’s top 20 agencies in the 2006 WA Business News Book of Lists.
Marketforce Advertising’s chair-man and chief executive officer John Driscoll told WA Business News there was a historical reason behind this.
“Advertising agencies have always tended to congregate together,” said Mr Driscoll referring to the precincts in North Sydney and Collin Street in Melbourne.
“When establishing ourselves in the area in 1974, Marketforce had an ‘original feel’ for West Perth. It was central, but not CBD.”
Mr Driscoll said West Perth provided a high-profile location, which was easily accessible from different parts of Perth.
This view is echoed by West Perth communications company Linc Online’s group managing director, John Carlson, who said West Perth was selected for its national head office due to its central location.
“Our clients are based throughout the metropolitan area, so being in a central location is considered extremely important,” he said. “West Perth is convenient for our clients to get to.”
Business brokers also have a considerable presence in West Perth with five of the top 11, from 2006 Book of Lists, headquartered within the suburb.
Broker Goodwin Mitchell O’Hehir’s managing director, Graham O’Hehir, said this was due to the ease of access for clients.
“When more than 20 clients come to visit the premises, accessibility is needed,” he said.
“Today, the business population and the residential population are booming in West Perth. The parking is becoming challenging, there is competition between residents, businessmen and builders for parking space.”
Blakiston and Crabb Solicitors partner Michael Blakiston said his company had operated from three offices in West Perth in its 21-year existence.
“We have a considerable resources client base in West Perth with approximately 70 per cent of our clients based in the West Perth/Subiaco area,” he said.
Escalating demand for office space has resulted in rental and sales prices in the West Perth office market nearing those offered in Perth’s central business district.
According to Property Council figures, in 2005 the vacancy rate in West Perth fell from 8.5 per cent in January 2005 to 3.7 per cent in January 2006, a record for the lowest vacancy rates in West Perth. Strong tenant demand and limited sales activity also contributed to average rents rising to record levels.
Burgess Rawson director Rob Selid said there had been a large number of sales to owner occupiers in West Perth with values escalating.
“The most recent sales of freestanding character offices has seen values over $3,300 per square metre on improved land value,” he said. “The same properties a year or so ago were around $2,000 per square metre.”
West Perth has also witnessed the development of a number of high-rise residential apartments, while the median house price in the area was $390,750 (year to March 2006), according to Real Estate Institute of WA suburb profile.
The suburb has also provided a new base for companies moving their headquarters from Perth’s CBD. In August 2005, the Royal Automobile Club of WA moved into its $32 million head office on Wellington Street in West Perth from its office on Adelaide Terrace.
According to RAC general manager of operations Michael Heath, the new building offered greater accessibility for members and staff to and from the Mitchell and Kwinana freeways, and to the public transport system.
“The new site also provides visibility of the new building and the RAC brand to motorists on the freeway and Wellington Street, and to members of the public riding and walking to and from the city,” Mr Heath said.
“The location alongside the retail complex Harbour Town, with its shopping and parking facilities, also gives the site good public amenity for staff.”
