NEW residential developments in the western suburbs are bringing small blocks, townhouses and small apartment buildings into a market traditionally dominated by large properties.
The smaller properties are catering for growing interest from young professionals and young families aiming to upgrade into the western suburbs and older local couples, who want to downsize their homes.
Six major residential developments will bring 912 new properties on to the market when completed.
They comprise: LandCorp’s 150-lot Perry Lakes project; Ocean Mia on The Boulevard, City Beach; Churchlands Green on Empire Avenue; the old Swanbourne High School site; Lakeway on Narla Road, Cottesloe; and the development on the nursery site next to Matthews’ Netball Centre on Salvado Road, Wembley.
Lot sizes in the new developments range from 250 square metres to 700sqm, similar in size to those in the successful Subi Centro, which averaged 265sqm.
Town of Cambridge CEO Jason Buckley told WA Business News the proposed development on the nursery site, announced last week, would have up to 200 properties consisting of townhouses and small apartment buildings.
Selling agents report that lot sales at the developments have been brisk.
The 68-block Ocean Mia development has released 33 blocks, of which 32 have been sold. At Perry Lakes, 42 of the 57 blocks released so far have been sold.
Acton real estate senior sales executive Maree Clough said the new blocks displayed a “new attitude to living”.
“Young professionals and their busy lifestyles mean they don’t want traditional blocks with large gardens,” Ms Clough said.
“They are willing to pay the same price of the older, larger blocks for these new, smaller blocks.”
Ms Clough said this was the first time in 25 years she had seen young professionals and young families buying into these areas.
Acton real estate sales executive Vivien Yap said young Subi Centro families had been buying the smaller lots because of their close proximity to the beach and good schools.
Both Ms Clough and Ms Yap said interest in the real estate market in Floreat and its surrounds had increased significantly this year.
“Amidst the economic uncertainty, people are starting to feel more confident and are making offers after long periods of searching,” Ms Clough said.
Nena Snooks real estate director Natalie Snooks told WA Business News people believed the market was nearing its trough and saw it as an opportunity to move into more valuable properties.
“Many have been doing the upgrade from areas like Wembley and Floreat to City Beach; you couldn’t get a better time to do it,” Ms Snooks said.
“Activity has definitely picked up but what everyone is now experiencing is a shortage of stock. It will be interesting to see what happens in the second half of this year.”
Ms Clough said buyers had been encouraged by lower borrowing rates.
The new developments are also attracting retirees and older couples looking to downsize their homes.
Ms Clough said the developments offered over 55s the chance to downsize while staying in the same suburbs they had become accustomed to.