THE property market in West Perth continues to benefit from strong demand following the sale of a property owned by the City of Perth for $1.65 million.
The 1,311 sq m site at 38- 40 Colin Street is zoned OR2 which allows for the development of offices, residential or a mixed use development.
It was sold to a private investment group and it is believed the site will be developed into an office building.
Colliers International director of commercial and investment sales Ian Mickle said the sale at auction showed the high demand for property in the West Perth office precinct.
“Office rents are already starting to make development feasible and further increases in rent are expected,” Mr Mickle said.
“With access to both Colin Street and via a right of way from Ord Street, this is an excellent development site offering great flexibility, either as an office development, as a site for up to 20 residential units or even as a mixed use property.
The sale drew a number of developers interested in the site for both residential and office development.
Investment goes north
THE northern suburbs has been given a boost by figures suggesting house values in Balga have increased by up to 16.1 per cent over the past year.
Suburbs that previously showed little potential such as Balga, Girrawheen, and Mirrabooka have benefited from government investment and rezoning.
“An average three bedroom house could fetch up to $140 rent a week and also offers the opportunity to develop in the future with the prospect of building two or three units,” LJ Hooker principal John Samykannu said.
