Deon White is a Perth based Partner in national planning, design and placemaking practice Roberts Day. Roberts Day have recently merged with Hatch’s global Urban Solutions team to launch Hatch RobertsDay in Australia, adding urban economics and global reach to some of the brightest minds in city shaping.
The Mining Boom from 2011-2015 injected an average $45bn annually into the WA economy and with that came a significant flow-on of secondary investment and population growth.
Unfortunately, from 2016 that level of investment dropped more than half, stalling population growth and bringing down the momentum of the property market, with the median house price dropping over 10%.
But after years of sleeping off the Mining Boom hangover, Perth could be emerging as a bright spot in the national property market – we are leveraging the benefits of isolation to sidestep the worst of the COVID-19 fallout. The lowest mainland capital median house price sits at $475k, so things are looking promising.
Mining investment has seen its first positive growth since 2012, population growth returned to 1.5% over the 12 months to March 2020 (3rd only behind Victoria and Queensland) and rental vacancies over the last two years has dropped from 3.8% to less than 1%!
The June and September median house price was stable at $475k. With a 20% reduction in housing stock and a 50% drop in the days on market compared to September 2019, REIWA is predicting modest price gains.
As the property market is showing signs of recovery in the uncertain haze of COVID-19 and stimulus distortions, the legacy of successive governments and industry leaders over recent decades is also starting to shine through; with a string of major developments now delivered or well underway. These projects are shedding the “Dullsville” tag and starting to seriously reposition the City’s metropolitan-wide liveability and lifestyle appeal…
Transport Revolution
Long known as the motor city, multiple contracts have now been let for Metronet – This is the largest urban rail expansion program ever for WA, adding 72km, 18 stations, associated redevelopment precincts and the return of rail car manufacturing. This is also coupled with significant regional road, freeway and city cycle network investment aimed at improving commuter, freight, tourism and recreational opportunities. A large number of middle and outer suburban locations will benefit;
Port Relocation
The State has committed to ‘Westport’ - the relocation of the main metropolitan container port from its colonial base at Fremantle to the Outer Harbour at Kwinana 20km south…….at least partially by 2032. This brings a significant boost to employment and residential growth in the southern suburbs and a major redevelopment boost for the historic port city of Fremantle, which is already going through an investment and development renaissance not seen since the 1987 America’s Cup;
Big City Moves
Three major precincts have redefined the experience of the City, its connection to country and landscape. Elizabeth Quay brings the river to the city, Yagan Square and City Link bridges the great north-south divide between the CBD and the urbane inner north and the Stadium precinct on the Burswood Peninsula. Each element provides significant associated commercial and residential growth and particularly connecting us to the long-forgotten eastern foreshore, which will be a major focus for residential growth;
Accommodation Boom
After decades of no meaningful supply, the leading international brands and boutique curators have delivered some of the most creative concepts in modern hotel experience into the heart of the city. With the State Buildings, in particular, continuing to accrue international accolades, the Westin, Intercontinental, QT, Alex and Adnate Art Series are all reshaping the City psyche and destinational pull;
Westin Hotel in Hibernian Place
The New (City) Deal
Announced this month, the $1.5bn investment brings an unprecedented focus back on the CBD, with a new Edith Cowan University campus right on Yagan Square, together with its world renown WA Academy of Performing Arts. There is funding support for Murdoch and Curtin University to expand their student numbers, a range of new and upgraded cultural facilities and recreational facilities all driving the residential amenity to support the newly announced population target of 90,000 people – a three-fold increase on current numbers.
With the lowest density of the four main capitals, the residential growth will be particularly evident in the eastern end of the CBD. Several new projects will become essential to improving the living amenity of the urban area; including Perth Girls School, Wellington Square, WACA redevelopment, East Perth Power Station and Stadium precinct.
With the State Commissioners having appointed a new CEO, new senior leadership team, and newly elected Mayor and Councillors, the City is refreshed and poised to continue to grow the depth and quality of experience for visitors, workers and residents alike.
Perth Girls School
Cultural Milieu
Our greatest weakness is on the rise - our Fringe Festival has emerged as the third largest in the world. This awesome feat supports a growing pool of creative performance venues, supplemented by the rebounding small bar and food scene which was hit hard after the post-boom evaporation of discretionary spending.
The new Hassell and OMA-designed State museum is due to open at the end of the year. This joins the upgraded Art Gallery in the revamped cultural precinct and the new Artrage base at the Perth Girls School precinct. Upgrades to the Perth Concert Hall and the preferred bidder status for the redevelopment of the East Perth Power Station redevelopment by Andrew Forrest and Kerry Stokes are also projects in Perth’s pipeline.
Perhaps the most exciting announcement is the funding to progress planning with our Traditional Owners for an Aboriginal Cultural Centre, celebrating our unique ancient culture and a symbolic reconciliation move; and
Urban Neighbourhoods
After years of progressive policy reform, some of our most valued inner and middle neighbourhoods are finally attracting high-quality residential apartment development. Projects are bringing housing choice and re-investment in tired and struggling retail village centres, signalling a cultural shift to apartment living, a major boost in amenity and value for established suburbs as well as infill development opportunities.
The current government heads to an early 2021 election with unprecedented levels of popularity, a solid budget surplus and a pro-development and employment stance. There is ongoing planning reform and new State Development pathway for major projects.
With high affordability, the newly discovered benefits of being the most isolated capital in the world and the WFH phenomenon breaking the geographic lock of residency and employment, it might just be the perfect time for Perth to shine.
Perth’s lifestyle might just be its greatest growth commodity yet.