RESIDENTIAL RESEARCH

LIVING & STUDYING BUYING PROPERTY WHY INVEST?

Contents 1. —The lifestyle city page 2

2. Liv ing in Perth page 4

3. Studying in Perth Whilst fortunate to tap into world-class page 7 reserves of natural minerals and energy Knight Frank City Wealth Index resources, Perth has evolved to grow an 4. Housing in Perth 2018, Perth equally important highly educated, skilled page 10 314 international cities ranked in each category and productive workforce strengthened 5. Renting in Perth by innovation and cultural diversity. This Ranking page 11 guide focuses on living, studying and buying residential property in Perth. Wealth 63 6. Buying in Perth Investment 88 page 12 Liveability Lifestyle 142

7. Buying as a First Home Buyer Perth ranked in 12th place of the World’s Future 56 page 13 Most Liveable Cities in 2018, according OVERALL 53 to the Economist Intelligence Unit, as 8. Buying as a Foreign Investor shown in Table 1. The index is based on page 14 30 factors spread across five areas: 9. Owning in Perth stability, infrastructure, education, health page 19 care and environment.

10. Selling in Perth page 20 Perth was als o 13 p laces higher (63rd) than for ‘wealth’. The two Most Liveable Cities 2018 elements that contributed to this Feature: Index of 140 global cities based on Stability, category include the number of 10 reasons to invest in Perth Infrastructure, Education, Health Care page 22 & Environment households earning US$250,000 in 2017, and the other being how fast this price 1. Vienna, Austria bracket is expected to grow over the next 2. Melbourne, Australia five years.

3. Osaka, Japan ‘Investment’ was the third category with double-d igit ranking for Perth, at 88th 12. Perth, Australia place. This was based on the annual average private investment int o property over the two-year period to the end of 2017 and the average number of nationalit ies investing. This is likely to increase in the 2018 results given the recent increased investment in WA. The City Wealth Index ‘lifestyle’ category, ranked Perth in 142nd Perth ranked in the top quintile of the position. This was based on cities with cities that matter to the ultra-wealthy in the most top 100 universities, the number the Knight Frank City Wealth Index 2018, of five-star hotels and the highest ranking in 53rd spot. average spend per overnight visitor. With strong future prospects, and several The best performing category for Perth hotels under construction due by 2020, was ‘Future’ (56th place), ranking higher this will boost touris m opportunities for than Brisbane (57th), based on the the city, and Perth’s global ranking in forecast of economic performance. future years.

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International be found at the intersection with Visitors Murray Street. FAST FACTS The balmy of Perth allows for a One of the largest diamond mines in the laid-back environment with locals soaking world—the Argyle Diamond Mine—is PERTH up the weather in the many cafés along located in the far north-east of Western vibrant shopping strips, down at the Australia (WA), close to the b order of the  Perth is the state capital of beach, bushwalking or riding bikes with Northern Territory. The mine is the largest Western Australia (WA). the family amongst the native flora and diamond producer in the world by  Australia’s fourth largest capital fauna or relaxing in one of the local volume, and is also the only known city, with approximately 2.04 significant source of the elusive p ink parklands. Most prominent is Kings Park million residents estimated adjoining the city skyline, with a high diamonds. Due to Perth’s proximity to the living in the Greater Perth vantage point over the Swan River and mine, diamonds are often d iscounted and region in 2017. Perth CBD. Watching unrivalled sunsets abundant in local jewellers. is very picturesque, being the only  Located on the West Coast, with a geographic area of Australian capital city to enjoy the sun The number of international v isitors to 6,400 sqm. WA increased by 1.1%, t o reach 967,000 setting on the ocean. visitors, in the year end ing March 2018.  Perth weather in the summer Perth accommodates a vast array of months is a hot, mean restaurants, fashion brands, independent The most number of international tourists maximum temperature of 31°C, retailers, as well as, shopping malls. In came from the United Kingdom (15%), while the cooler winters have a the Perth CBD, Hay Street Mall and Malaysia (11%), Singapore (11%), United mean minimum of 8°C.

Murray Street Mall both comprise States (9%) and New Zealand (7%) as  Most daily sunshine is 13 hours pedestrian-only shopping districts, while shown in Figure 1. in the month of January. Perth retail strips and arcades feature a diverse generally has more sunny days range of traders. Looking at WA’s top 10 international than other Australian cap ital markets over this time, there was strong cities over the year. Traditional department stores like Myer growth in the number of additional  Perth operates under the and David Jones are also found here. visitors from China (8.6% or equivalent to Australian Western Standard King Street, Perth is known as the ‘start 4,600 additional vis itors), India (12.0% or Time (AWST) time zone at all of West End’, famed for international +3,100), Japan (9.9% or +2,500), and the times of the year. Perth falls luxury brands. Many cafés and bars can U.S (3.1% or +2,500). into the same time zone as capital cities such as Singapore, Hong Kong, Kuala Lumpur, Jakarta, Beijing and Shanghai. International Visitors to Western Australia, by Country of Residence % of total, year ending March 2018  From Perth, current average flying travel time is approximately four (4) hours to U.K Jakarta, five (5) hours to

Malaysia Singapore, six (6) hours to Kuala Lumpur, eight (8) hours Singapore to Hong Kong, nine (9) hours to Other Asia Shanghai and 10 hours to Beijing. Other Europe

U.S  Perth is the closest major Australian capital city to Asia, Other Countries allowing easy connection New Zealand towards the European

China continent.

Germany

Indonesia

Japan

Hong Kong

Switzerland

0% 3% 6% 9% 12% 15%

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Perth’s Demographic Language Other than English, Mandarin (2.3%) was Profile the most common language spoken in a Perth household. Other typical languages Population include Italian (1.4%), Vietnamese (1.0%), Populat ion has been steadily ris ing in Cantonese (1.0%) and Arabic (0.7%). Perth. Over the year to 30 June 2017, an increase in the estimated resident population was recorded at 1.0% t o 2.04 Education million. This is slightly below the overall Perth is a skilled city. A higher proportion PERTH ANNUAL Australian p opulation growth of 1.6%. of peop le are educated at university level

EVENT CALENDAR (22.9%) compared to the Australian According to the Australian Bureau of average (22.0%). In Perth, 16.5% of the JANUARY Statistics (ABS), the Perth population is local student population were studying at  Perth Chinese New Year Fair projected to grow annually by 2.5% to university in the 2016 Census, compared  Perth Cup, Ascot Racecourse 3.6 million persons by 2036. This is  Hopman Cup to the national average of 16.1%. based on the assumption of a strong  Australia Day Perth Celebrations depth of mining activity in WA. FEBRUARY  Perth International Arts Festival Work  Rottnest Channel Swim The most common occupation of Perth’s MARCH Age Distribution residents are in professional services—at  Sculptures by the Sea, Cottesloe Age distribution in Perth is relatively 22.2%—on par with the national average.  Mandurah Crab Fest comparable with the national average— Technicians and trades workers (15.6%), APRIL however, the 20-29 age group trends clerical and ad ministrative workers  SunSmart Busselton Festival of higher at 14.6% against the national Triathlon (13.6%) and managers (11.5%) were the average at 13.8%. next most common occupations. MAY

 Jazz by the Bay  Argyle Diamonds Ord Valley Despite WA being known as a mining Muster Multiculturalism state—the city of Perth is not classified

JUNE Perth is a true multicultural city, with as a ‘mining town’. Only 5% of Perth’s  Feed Box Market Finale 42.7% of residents being b orn outside of population in 2016 worked in the mining

JULY Australia. The most prominent countries industry, with most miners living in  Good Food and Wine Show of birth include England (8.6%), New remote towns closer to the mines and

AUGUST Zealand (3.2%), Ind ia (2.4%) South Africa commuting each day.

 Mt Claremont Farmers Market (1.8%), and Malaysia (1.5%). Almost 46%  Stirling Farmers Market of parents of the residents in Perth were Of all the emp loyed people in Perth, 3.8%

SEPTEMBER born overseas, exceeding the national worked in hospitals. Other major  Australian Football League Grand average of 34.4%. This wide d iversity has industries of employment included cafés Final and restaurants (2.5%), primary encouraged many international OCTOBER restaurants, schools and cultural education (2.5%) and supermarket and  Oxfam Trailwalker Perth activities established within communities. grocery stores (2.4%).  The Handmade Expo Market

NOVEMBER  Perth International Arts Festival Religion Travel to Work (Films)  The Last Gentlemen of War The Catholic religion was practiced by In Perth at the time of the Census 2016,

the most common methods of travel to DECEMBER 22% of Perth residents at the time of the Census 2016, this was followed by work for emp loyed people were by car,  Christmas in the City Celebrations Anglican at 13.8%, then Christian with as a driver (64.1%) and car, as a  Swan River New Year’s Eve 3.4%. No religion was the most common passenger (4.6%). Other common Fireworks response in Perth with 32.1% of the responses were worked at home (3.9%), population. bus (3.7%) and train (2.8%).

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On the day, 10.3% of emp loyed people The CBD is surrounded by open used public transport (train, bus, ferry, parklands enjoyed by workers at Industrial tram/light rail) as at least one of their lunchtime includ ing Kings Park, Langley methods of travel to work and 71.3% Park, Wellington Square, Queens Industrial areas are more spread across used car (either as driver or as Gardens, , Supreme the metropolitan area varying from passenger). Court Gardens and the Esplanade distribution centres to warehouses and Reserve. industrial estates.

Key Employment The redevelopment of North: Balcatta, Malaga, Osborne Park, accommodates further office space for Neerabup, Gnangara. Hubs the CBD and an array of restaurants and East: , Kenwick, The distribution of employ ment vibrant outdoor spaces overlooking the Maddington, Hazelmere, Welshpool, opportunities are wide across Perth, Swan R iver. Accessible by: train, ferry, High Wycombe, Kendale, Bassendean, although there are key concentrated bus and car. Forrestfield, Belmont, Bayswater, areas for office and industrial workers. South Guildford, Forrestdale, West Perth accommodates the next largest office market bound by Kings Beckenham. Commercial Park Road to the south, Thomas Street to Perth CBD is the largest office market in the west, Roe Street to the north and South: Jandakot, Canning Vale, Perth. The CBD extends the length of St George Street to the east. Bibra Lake, Yangebup, Kwinana, Georges Terrace through Adelaide O’Connor, Henderson, Hope Valley, Terrace to Plain Street in East Perth, To the south, the precinct skirts the Fremant le, Rockingham. bound by Wellington Street to the north, Parliament of Western Australia, the Old Elder Street to the west and the Swan Observatory, Dumus House and Kings Mostly the suburbs are accessible by: River to the south. Park. Accessible by: bus and car. bus, truck and car.

Perth Major infrastructure network

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6 FOCUS ON PERTH Q4 2018 RESEARCH

single student visa regardless of their Schools Universities chosen course of study and the Student Schools in Australia generally comprise a Most universities have a main campus Guardian Visa—Subclass 590 where mix of local and international students. with several s maller campuses located student guardians can apply for the new The education system is broad ly divided across mult iple states and territories; in Student Guardian Visa. into primary (aged 5-12) and secondary CBD, metropolitan and regional areas. (aged 13-18). There are two main types This provides a wide range of options All students and student guardians will of public and private schools: when studying in Australia with many generally be required to lodge their visa universities als o setting up campuses application online by creating an Public Schools based in major international cities. ImmiAccount. Public schools are financially and administratively operated by the State International Government and provide free education to domestic students. First preference is Students normally given t o those living within a Reflecting the good reputation particular catchment area from the internationally, universities in WA APPLICATION school. Student visa holders must pay a accommodate a large international PROCESS FOR fixed fee for each year of education, student base. Enrolments in WA Higher INTERNATIONAL dependent on the type of visa held. Education had the largest share of STUDENTS international students at 21,200—an Selective public schools are financially increase of 2.1%. While enrolments in and administratively operated by the Schools were up 6.7%—t o represent 850 State Government. Selective public TO SCHOOL international students. Across all schools are regarded as more prestigious education sectors, the largest group of Expression of interest form: must due to the academic selective nature. international students in Western be completed prior to the school Students must sit academic examination Australia have enrolled from India (7,950), year in order to guarantee a and excel in order to be offered a China (7,950) and Malaysia (3,600). Other position for the student. position from the respective school. high-ranking Asian countries include

Taiwan (2,200), Vietnam (2,050). South Wait for offer: If all requirements Additionally, these selective public Korea (2,000), Hong Kong (2,000), are met, the school will offer a schools do not usually limit their intake to Singapore (1,450), Indones ia (1,200) and formal placement in writing. catchment areas. Due t o their public Japan (1,100). nature, student visa holders must pay a Apply for a Student Visa: With the fee for each year of education. The application process for international formal school offer, students can

students applying to Australian then apply for the SSVF online. Private Schools universities is similar to local students. The length of the application process can Independent schools are financially and often be longer than local students, as administratively privately operated. TO UNIVERSITY more informat ion is required before Independent schools therefore hold more acceptance. Most universities will require Apply directly online: through the control over the quantity and quality of an IELTS (International English Language university website and provide all teachers, classroom sizes, amenities and Testing System) examination conducted, required evidence. In most co-curricular activities. Fees for an internationally recognised education instances this is prior education, independent schools are usually high, but qualification and a portfolio of previous financial and English language can be considered to provide an work experience where applicab le. competence. investment for superior education and amenities to students. Wait for Offer: If all requirements The Simplified Student Visa are met, the university will offer a Religion-based schools hold faith at the Framework (SSVF) formal placement in writing. core of their education—however they The Simplified Student Visa Framework continue to follow the state government (SSVF) is designed to make the process Apply for a Student Visa: With the education curriculum. These religion- of applying for a student visa in Australia formal university offer, students based schools are usually non- simpler to navigate via two subclasses: can then apply for SSVF online. government, and thus often have higher fees than government subsidised Student Visa—Subclass 500 where schools. international students can apply for a

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Private Schools for International Students, Perth Sample of private schools registered to accept international students, 2018

Suburb School Religion Gender Year Levels

Attadale Santa Maria College Catholic Girls 5-12 Beaconsfield Christ the King School Catholic Co-ed K-7 Bedford Chisholm Catholic College Catholic Co-ed 7-12 Bull Creek All Saints' College Anglican Co-ed K-12 Burswood Perth Montessori School Montessori Co-ed K-12 Carmel Carmel Adventist College Seventh Day Adventist Co-ed 8-12 Churchlands Newman College Catholic Co-ed K-12 Claremont Christ Church Grammar School Anglican Boys pre-K-12 Claremont Methodist Ladies' College Methodist Girls K-12 Claremont St Thomas' Primary School Catholic Co-ed K-7 Como Penrhos College Uniting Girls K-12 Darch Kingsway Christian College Protestant Co-ed K-12 Duncraig St Stephen's School (Duncraig) Uniting Co-ed pre-K-12 East Perth Trinity College^ Catholic Boys 7-12 East Victoria Park Ursula Frayne Catholic College (Balmoral Street) Catholic Co-ed K-6 CBC Catholic Boys 7-12 Guildford Guildford Grammar School Anglican Boys 7-12 Joondalup Lake Joondalup Baptist College Christian Co-ed pre-K-12 Joondanna St Denis School Catholic Co-ed K-7 Karrinyup St Mary's Anglican Girls' School Anglican Girls K-12 Kenwick Rehboth Christian College Christian Co-ed K-12 Koondoola Mercy College Catholic Co-ed K-12 Landsdale Landsdale Gardens Adventist School Seventh Day Adventist Co-ed K-7 Langford St Jude's Catholic School Catholic Co-ed K-7 Leederville Aranmore Catholic College Catholic Co-ed 7-12 Lesmurdie St Brigid's College Catholic Co-ed K-12 Mandurah Mandurah Catholic College Catholic Co-ed K-12 Middle Swan Swan Christian College Christian Co-ed K-12 Mindarie Quinns Baptist College Baptist Co-ed K-12 Mosman Park St Hilda's Anglican School for Girls Anglican Girls K-12 Mount Lawley Perth College Anglican Girls K-12 Mt Claremont Moerlina School Non-denominational Co-ed pre-K-7 Murdoch Kennedy Baptist College Baptist Co-ed 7-12 Murdoch Murdoch College Non-denominational Co-ed 7-12 Murdoch Winthrop Baptist College Baptist Co-ed 8-12 Peppermint Grove Presbyterian Ladies College Presbyterian Girls pre-K-12 Perth Mercedes College Catholic Girls 7-12 Queens Park St Norbert College Catholic Co-ed 7-12 Salter Point Aquinas College Catholic Boys K-12 Samson Seton Catholic College Catholic Co-ed 8-12 Scarborough St John's School Catholic Co-ed K-7 South Perth Wesley College Methodist Boys K-12 Southern River Thornlie Christian College Christian Co-ed K-12 Swanbourne Scotch College Presbyterian Boys K-12 Tapping St Stephen's School (Carramar) Uniting Co-ed K-12 Thornlie Australian Islamic College Islamic Co-ed K-7 Victoria Park Riverside Community School Seventh Day Adventist Co-ed K-7 Victoria Park Ursula Frayne Catholic College (Duncan Street) Catholic Co-ed K-12 Wembley Downs Hale School Anglican Boys 1-12 Wilson Rehboth Christian College Christian Co-ed K-7

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Universities, Western Australia Universities accepting international students Annual Average World Australian Number of International Adjusted International University Name Ranking Ranking International Students % of Graduate Salary Student Fees 2017 2017 Students Total Students

University of Western Australia 128 26 $58,809 5,207 20% $34,000 Curtin University 294 20 $48,383 15,205 31% $29,000 Murdoch University 601 32 $47,855 9,961 43% $27,000 Edith Cowan University 807 25 $47,572 4,009 16% $25,000 Central Queensland University 861 26 $53,112 4,437 25% $23,000 University of Notre Dame 1,826 17 $53,662 320 3% NA

Definitions World Ranking is calculated by averaging the ranking produced by QS World University Ranking, the Shanghai Acad emic Ranking of World Univer sities and Webometrics web publishing rankings. Australian Ranking is calculated from the combined score for World Ranking (rep utation), Graduate Satisfaction (ratings) and Adjusted Graduate S alary (results). Adjusted Graduate Salary is a measure of how well students are doing in the job market some months after graduating based on graduate salaries, rates of unemployment and the proportion of students who go onto further study. Annual International Student Fees are an estimate only. It is highly recommended to engage directly with the Australian university for information on the cours e and fees applicable. Further information is available at univeristyreviews.com.au

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Across Greater Perth, the ‘Great lived in were owned outright, whilst 42% Midland Australian Dream’ - a house standing on were owned with a mortgage. The  Midland a ‘quarter acre block’, is still relatively remainder (27%) were being rented from affordable and within close proximity to a landlord. Armadale the city.  Armadale  Wungong Urban Although with our fast-paced lives, many are now choosing low maintenance liv ing Distribution of Tenure, Perth Scarborough and opting for apartments in comp lexes % of private dwellings  Scarborough with high amenity. This is becoming particular popular with downsizing Further metropolitan p lanning initiat ives households. This reflects the changing by the WA Planning Commission (WAPC) demand across the metropolitan area for and Department of Planning, Lands and public parklands and shared facilities. Heritage have been established.

These include: Dwelling Types  Bentley-Curtin Specialised Activity Centre structure plan project Standalone houses (also known as  Canning Brid ge precinct vision landed) cont inue to be the most dominant  Cockburn coast district structure plan dwelling type in Perth, representing 77%  East Parade urban regeneration of all d wellings. This is trending higher East Wanneroo District Structure Plan than the national average of 73% given  the greater volume of lower density  Future planning for Mandogalup area property in Perth.  Kwinana intermodal terminal OWNED WITH MORTGAGE OWNED OUTRIGHT  Murdoch Specialised Activity Centre RENTED Following suit, semi-detached, row or NOT STATED  Stirling city centre structure plan terrace houses and townhouses, with a OTHER  Swan Valley compact backyard, comprised a 16% share; trending ab ove the national share of 12.7%. Prime properties

Prime properties, considered the top 5% Although more people are moving of the residential market by value, are towards higher density liv ing, there still mostly close to, or dotted around, the remains a little under 7% of all dwellings Growth precincts Swan R iver. Well-respected private are flats or apartments, compared to the The WA government has identified key schools located in these prestige national share of 13.1%. locations across Perth suitable for suburbs attract many local and rejuvenation with new homes and jobs. international families alike.

The Metropolitan Redevelopment Ownership Areas in the Western Suburbs can In Australia, most residential dwellings Authority (MRA) is transforming p laces in command some of the most picturesque and around five redevelop ment areas: are purchased as freehold property, that river or ocean views. South of the River, is, the land and building are owned South Perth across to Applecross Central Perth outright, in perpetuity, under the Torrens capture uninterrupted city skyline views Claisebrook Village Title system.  in the one frame.  East Perth Power Station The same exists for Strata Title, although  Elizabeth Quay Peppermint Grove is considered the ownership allows individual ownership of  New Northbridge most expensive suburb by value, part of a property (or ‘lot'), comb ined with  Perth City Link according to the Real Estate Institute of shared ownership in the remainder, or  WA (REIWA) for those suburbs with more common property, through a legal entity  Riverside than 20 transactions. This is followed by called the owners corporation (see further Dalkeith, Cottesloe, City Beach, information on page 19). Subiaco Applecross, Nedlands, Swanb ourne, On the night of the Census 2016, 28% of  Subi Centro Churchlands, Claremont and Perth residential private properties being  Subi East Mt Claremont.

10 FOCUS ON PERTH Q4 2018 RESEARCH

The process of renting (also known as upfront by the tenants as security before leasing or letting) a residential property moving into the property. This lump can vary in each state, but generally the sum—is four (4) weeks rent—is held in main factors for a tenant to consider are trust by the WA Bond Administration. outlined below. At the termination of the tenancy Tenancy Agreement agreement, if the property is vacated and left in a suitable cond ition, the bond will A tenancy agreement (property lease) is a be repaid in full to the tenant. contract where one party conveys property to another for a specified period of time, in return for a regular pay ment. Utility & Service Charges When leasing out a property, the owner Utility usage charges are the receives an income, but there are responsibility of the tenants and will be maintenance costs and responsibilities detailed in the lease agreement. Service for the landlord. charges and taxes are paid by the owner and cannot be passed onto the tenant. Before signing a tenancy agreement, a tenancy application must be submitted to Inspections & Repairs the real estate agency (property manager) with proof of identity, ability to meet Throughout the tenancy, the property will rental payments and good references. be inspected quarterly by the landlord or property manager. A minimum of seven (7) days notice will be given with the Rent purpose of these inspections being to As stipulated in the tenancy agreement, check the maintenance of the property. the tenant agrees to regularly pay rent to the landlord (most times this is Repairs to the property that are due to conducted via a property manager and the normal wear and tear of the property rent can be paid weekly, fortnightly or must be paid for by the landlord. monthly). Repairs classified as ‘urgent’ must be comp leted as soon as possible, while Any future increases will be stated within ‘non-urgent’ repairs must be taken care the tenancy agreement. The rent can be of before the 14 days of notification. increased every six (6) months, even during the fixed term lease. Furniture

Generally, residential properties do not Term come furnished, however it is common The length of a tenancy agreement can for inner city apartments to be fully vary, however the standard term is furnished and equipped. This will be usually six (6) or twelve (12) months for clarified in the tenancy agreement. the init ial agreement although alternate periods may be negotiab le dependant on Terminating the Tenancy the requirements of the landlord and/or tenant. A tenancy can be terminated at the conclusion of the tenancy agreement. Once a tenancy agreement expires, the However, both land lord and tenant can tenant can request a new fixed term, or request to end the tenancy for a variety of alternatively the tenant can stay in the reasons. Certain conditions must be met premises at the same rent and conditions before it can be terminated, including until advised. days of notice, number of notices and reason for terminat ion.

Bond For further information, contact WA Dept. A bond is a lump sum payment paid of Mines, Industry Regulation and Safety.

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The Process inspection to guarantee the quality of It’s wise for this type of investment, the building and be aware of especially with s maller and unknown The process to purchase a residential maintenance required. property can vary widely but the most developers, that contracts are reviewed by legal representation and the ‘sunset common steps are outlined below. For Negotiate by private treaty the highest clause’ explained, which p laces a further information and clarity, consult price willing to be paid for the property with your legal representative. deadline for the registration of Title. This with the vend ors (via the selling agent) or ensures construction is completed within

alternatively bid at public auction. a timeframe. Should a development not Finance Representation proceed, deposits will be returned. But Before starting the journey to purchase a A deposit is required for a private treaty could be at (rarely) the expense of residential property, carry out due until formal finance is approved; at this missed interest. diligence of the subject property and time the full deposit (say, 10%) is paid. If surrounding area to ensure the price bid was accepted at auction, the full There can also be more tax depreciation expectation can be achieved with the deposit is payable at this time (say, available on new properties, meaning allocated budget. 10%). The deposit is generally paid by maximis ing benefits and improv ing after- cheque or electronic transfer (private tax cash flow for investment properties. The lending environment has become treaty only). challenging in recent years, when seeking a loan from a financial institution. Many Contracts are signed and exchanged General Costs local banks will only lend if 20% of the by both parties and it’s time the solicitor When buy ing property in Australia, there purchase price has been saved and there (or conveyancer) finalises the formal are both federal and state taxes and a is good evidence the property loan can paperwork with the lender. Loan range of fees that are imp lemented. be repaid regularly with the property loan documents are signed. based on market value. Shop around as mortgages and deposits can vary Settlement occurs when the property Transfer Duty officially changes ownership, following significantly between prov iders. Transfer duty (also known as Stamp one final inspection on the day and the Duty) is levied by the state government locks are changed. on the purchase of property. Legal Representation

Engaging a solicitor or conveyancer prior Buying Off-The-Plan to purchasing the property is highly Legal Fees In most cases, buying off-the-plan (OTP) recommended so they can review the Legal fees will vary between legal firms is the commitment to buy a property contract before signing, and then stay and may be dependent on property that’s not yet built. engaged throughout the process until the value. Generally fees range from $1,000 property settles (when the property to $3,000 plus GST. An OTP property can be better priced officially changes ownership). than established stock as developers are keen to secure sales in the project so Land Transfer Fee Buying Established Property lenders will provide funding and When a property changes ownership, a Search for a property priced to match construction can commence. There is document known as a Land Transfer is requirements for location, proximity to also the potential flexib ility at this time to lodged and registered with the WA Office transport, work and education and the make design changes to an apartment or of State Revenue, and a fee is charged. It quality, size and age of the dwelling. house prior to turning sod. is this document that records the change Staying abreast of comparable sales will of ownership. The cost to register the title assist in the negotiation process. In most cases a deposit, typically 10%, is varies in each state of Australia. A paid to the developer and the remaining solicitor or conveyancer will perform this Inspect the property at an open house or is paid on settlement of the property, task on your behalf. by private appointment. Request a copy allowing more time to save throughout of the contract and have solicitor (or the construction period. Through this conveyancer) read over the document. time, market forces may push market Mortgage Application Fee values up, at an advantage t o the buyer, A fee charged by the state government Gain pre-approval for loan from lender at the same time consideration must be for the registration of a mortgage. A and confirm qualification from FIRB if made should the market slow over this lender will perform this task on your required. Arrange a pest and building time. behalf.

12 FOCUS ON PERTH Q4 2018 RESEARCH

Both the Australian and state Since 1 July 2018, individuals can apply governments provide incentives for to release these voluntary contributions, First Home Owner Grant Eligibility Australian first home buyers. along with associated earnings, to assist Criteria in purchasing their first home. First Home Owner Grant (FHOG)

Incentives for Western Australia; includ ing Perth The scheme allows Australians to make First Home Buyers voluntary contributions of up to $15,000 Threshold (the property must valued less than) in any one financial year, to a maximum in Australia $30,000 across all years. This includes Located south of the 26th parallel $750,000 undeducted (non-concessional) personal First Home Super Scheme Located north of the 26th parallel $1,000,00 contributions, deducted (concessional) The Australian Government, from 1 July personal contributions and salary Conditions 2017, has allowed individuals to make sacrifice contributions. These Dwelling must be new, unless specified; voluntary concessional (before-tax) and contributions, which are taxed at 15%, non-concessional (after-tax) contributions along with deemed earnings, can then be Persons must be a minimum age of 18 years; into superannuation funds to fast-track withdrawn for a deposit if the eligibility the time taken to purchase a new home criteria is met. At least one applicant is a natural person; under the First Home Super Scheme At least one applicant is an Australian permanent (FHSS). Concessional contributions and earnings resident or citizen; that are withdrawn will be taxed at The contract date must be on or after 1 July 2017; marginal rates less a 30% offset. Contributions made under this scheme No persons to have held a relevant interest in any are not a new type of contribution. They residential property in Australia prior to 1 July 2000; are voluntary contributions made to your on or after 1 July 2000 and occupied that property as a place of residence before 1 July 2004; on or superannuation fund. As a result, a First Home Super Scheme Eligibility after 1 July 2004 for a continuous period of at least Criteria, Australia separate special account doesn't need to six months; First Home Super Scheme (FHSS) be established nor does the fund need to be notified. Must live in new home as principal place of Conditions residence continuously for at least 6 months within the first 12 months of settlement. First home buyer – never owned property in Australia For further information, contact the – this includes an investment property, vacant land, Australian Taxation Office. commercial property, a lease of land in Australia or a company title interest in land in Australia; Incentives for First Must live in the premises you are buying, or intend to as soon as practicable; Home Buyers in Must intend to live in the property for at least Western Australia Stamp Duty Concessions six months of the first 12 months you own it, after it is practical to move in; First Home Owner Grant A first home owner concessional rate on transfer duty (stamp duty) is available if Superannuation contributions can be from any age The First Home Owner Grant (FHOG) is but persons must be a minimum age of 18 years to the first home is valued at less than currently available in WA once an request for funds to be released; $530,000 in WA. eligibility criteria is met. Not previously requested the Commissioner to issue The transfer duty will be exempt if the a FHSS release authority; first home is valued below $430,000. Eligibility is assessed on an individual basis—so multiple persons can access their own FHSS For vacant land in WA, if valued at less contributions to purchase the same property; First Home Owner Grant Available than $400,000, a concessional transfer First Home Owner Grant (FHOG) If any persons have previously owned a home, it will duty is available. not stop any other persons being eligible to apply; Western Australia; includ ing Perth Transfer duty will be exempt if the Don't sign contract to purchase or construct the Grant vacant land is valued below $300,000. home until money is released or there may be FHSS tax liability; this may take up to 25 days. One-off $10,000 For further information, contact the WA Office of State Revenue.

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Current regulations for

foreign investors

purchasing

residential  Must apply and gain approval from the FIRB prior to purchasing property in Australia. property in Perth  A temporary resident is a person  Applications are generally approved who is residing in Australia and if the property purchased adds to holds a temp orary residency visa the housing stock, including new which permits them to stay in dwellings that are yet to be Australia for a continuous period of occupied or sold, off-the-p lan more than 12 months (regardless of properties under construction or yet how long remains on the visa); or to be built. This includes vacant land has submitted an application for for residential develop ment where permanent residency and holds a ongoing construction begins within bridging visa which permits them to 24 months. stay in Australia until that application has been finalised.  Non-permanent residents are  Are required to notify FIRB prior to forbidden to purchase established dwellings as investment properties purchasing property in Australia, or as homes. Although there could including an established dwelling, a be an exception if the established new dwelling that has been dwelling is being redeveloped into purchased directly from the mult iple dwellings, and as a result, developer and has not been For further information: there is an increase in the dwelling previously occupied for more than count. Over the development 12 months in total and vacant land period, the house must remain for residential develop ment where unoccupied. ongoing construction begins with 24 Foreign Investment Review months. Temporary residents are Board [FIRB]  Foreign buyers can purchase an off- not permitted to buy established the-plan dwelling, when another dwellings as investment properties. firb.gov.au buyer has failed to reach settlement—reverting to its previous  May acquire one established status as a new dwelling. An dwelling only and it must be used as apartment or house that has just their main residence (home) in Department of Immigration been built, or is still under Australia. Such prop osals normally and Border Protection construction and for which the title meet with no foreign investment has never changed hands, is not objections subject to conditions; border.gov.au considered an established d welling. such as, that the temporary resident sells the property when it ceases to be their main residence.

Non-Permanent Temporary Resident Resident (Temporary (Foreign Investor) Residency Visa)

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The Australian Government welcomes foreign investment into Australia’s resident ial property market. The current rules around foreign investment in residential property aim to d irect investment into new housing, increasing the housing supply and support local economic activity.

 Acquiring second-hand dwellings for the purpose of provid ing housing for their Australian-based staff normally meet with no objections subject to the conditions set by FIRB.  Investment migrants under this  Investment migrants under this scheme are required to invest at  The company must sell the property scheme are required to invest at least AUD$15 million into complying if it is expected to remain vacant for least AUD$5 million into comp lying investments in Australia for a six months or more. In remote and investments in Australia for a minimum of 12 months before rural locations foreign companies minimum of four years before becoming eligible for permanent may rent out dwellings acquired becoming eligible for permanent residency; a more expeditious under this category only where they residency. pathway than the SIV. are unable to sell the property.  The SIV scheme is intended to  The PIV scheme is aimed at  Whether a company is eligible, and target the migration of high net- attracting applicants with business the number of properties it may worth individuals to Australia with and entrepreneurial skills and capital acquire under this category, will the longer-term aim of transferring to enhance investment into depend upon the scope of the wealth of international businesses innovative Australian businesses foreign company's operations and and indiv iduals to benefit Australian and the commercialisation of assets in Australia. businesses and the broader Australian ideas, research and economy. development.  Foreign companies would not be eligible under this category where  The SIV scheme was introduced on  The PIV scheme was introduced on the property would represent a 24 November 2012 and is operated 1 July 2015 and is operated by the significant proportion of its by the Department of Immigration Department of Immigration and Australian assets. and Border Protection. Border Protection.

Significant Investor Visa (SIV) Premium Investor Visa (PIV)

Foreign Company Investment Migrants with Australian (High Net Worth Individuals) Business

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Additional Costs for Fees payable by Foreign Investors, Foreign Buyers Residential property Based on Property Value, AUD All foreign persons — that is, temporary residents and non-residents — can apply $0 - $1,000,000 $5,600 to purchase vacant residential land for development and newly constructed $1,000,001 - $1,999,999 $11,300 dwellings in Australia. $2,000,000 - $2,999,999 $22,700

Non-resident foreign persons are $3,000,000 - $3,999,999 $34,000 generally prohibited from purchasing established dwellings in Australia. $4,000,000 - $4,999,999 $45,400

However, temporary residents can apply $5,000,000 - $5,999,999 $56,700 to purchase one established dwelling to use as their residence while they live in $6,000,000 - $6,999,999 $68,100 Australia, although on the cond ition the $7,000,000 - $7,999,999 $79,500 property is sold when it ceases to be their principal place of residence. $8,000,000 - $8,999,999 $90,900

Once a property has been identified to $9,000,000 - $9,999,999 $102,300 purchase, an application must be made $10,000,000 or more tiered per million to the Australian Foreign Investment Review Board (FIRB).

It is highly recommended that an application is sub mitted prior to the advance of any transaction—to ensure comp lete legality of the purchase. Additionally, approval from FIRB is property-specific—one applicat ion per The FIRB provides an interactive fee property. estimator.

When the application is submitted, the Duty Surcharge government investigates to ensure that the purchase of the property will be in the Foreign purchasers are currently exempt country’s best interest. from duty surcharges in WA. However, the State Government is introducing a A decision on the application is made 7% Foreign Buyers Surcharge tax from 1 within 30 days—unless complications or January 2019. alterations occur, in which it may take up to 90 days. The New South Wales (8%), Victoria (7%) and Queensland (7%) state governments have introduced a duty surcharge for Foreign Investor Application foreign investors, payable in addition t o Fee general state-based transfer duties.

All foreign investors must pay a fee

before their foreign investment application will be processed.

Foreign investors are required to pay Duties payable by Foreign $5,600 to purchase a new property if Investors, Residential property valued under $1 million, with additional Based on Property Value, AUD, Payable in fees payable per million in the value of addition to general state-based transfer duties the property. Western Australia; includ ing Perth

This fee does not provide any assurance Duty Surcharge on Purchase Price 0% of securing the property and strict penalties are applied for those who breach the rules.

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Estimated Property Purchase Costs, Perth All costs represented in AUD, As at 1 October 2018

Purchase Price 350,000 500,000 750,000 1,000,000 1,250,000 1,500,000

Transfer Duty 10,740 17,770 29,740 42,620 55,500 68,370

Land Transfer Fee 250 270 330 370 430 470

Legal Fee (includes GST payable) 1,500 1,500 1,500 2,000 2,000 2,000

Mortgage Application Fee 180 180 180 180 180 180

General: Estimated Total Costs 12,670 19,720 31,750 45,170 71,020 71,020

Foreign Investor Application Fee* 5,600 5,600 5,600 5,600 11,300 11,300

Foreign Investor Duty Surcharge @0% 0 0 0 0 0 0

Foreign Investor: Estimated Total Costs 18,270 25,320 37,350 50,770 82,320 82,320

Estimated Property Purchase Costs, Perth All costs represented in AUD, As at 1 January 2019

Purchase Price 350,000 500,000 750,000 1,000,000 1,250,000 1,500,000

Transfer Duty 10,740 17,770 29,740 42,620 55,500 68,370

Land Transfer Fee 250 270 330 370 430 470

Legal Fee (includes GST payable) 1,500 1,500 1,500 2,000 2,000 2,000

Mortgage Application Fee 180 180 180 180 180 180

General: Estimated Total Costs 12,670 19,720 31,750 45,170 71,020 71,020

Foreign Investor Application Fee* 5,600 5,600 5,600 5,600 11,300 11,300

Foreign Investor Duty Surcharge @7% 24,500 35,000 52,500 70,000 87,500 105,000

Foreign Investor: Estimated Total Costs 42,770 60,320 89,850 120,770 156,910 187,320

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18 FOCUS ON PERTH Q4 2018 RESEARCH

WHAT IS THE In Perth, costs and taxes associated with ROLE OF AN the ownership of a property can vary Additional Costs as dependent on the services the building a Landlord OWNERS provides. CORPORATION? Property Management Fees

General Costs Letting Fees are usually equivalent to The rights and responsibilities of two (2) weeks rent paid to the agent as a both the owners corporation and Land Tax fee for finding and securing a tenant. its members is different in each Management Fees cover any costs Land tax is an annual state tax that is state but generally comprise: calculated based on the aggregated associated with managing the property, taxable value of all land owned (or jointly typically 8.5% plus GST.  Maintain and repair the common owned) by an indiv idual. Land Tax is not property of the strata scheme; applied if the property is your principal Utility and Service Charges  Manage the finances of the residence. The owner must pay for the use of strata scheme;

utilit ies (electricity, gas, oil and water Council Rates supply). Although if the owner leases the  Maintain required insurances property to a tenant, some of these can including public liability and This varies across the states and local building insurance where government areas. This is the tax the be passed on but this must be stipulated applicable; within the tenancy agreement. However, council charges owners for the services to the property—generally paid quarterly the owner must pay for the actual  Keep records of all details of or annually. installation and initial connection costs. notices given under the relevant state strata management legislation; Income Tax Landlord Insurance A strata register must be Landlord insurance is designed  Income tax is payable on gross rental established and maintained, income, less any allowable deductions specifically to cover rental properties. detailing the owner’s name or Depending on the insurance provider, it incurred in earning that income. As there agent’s name and address for each lot within the strata are a number of p otential allowable protects the home from damage, theft, severe weather or rent default in some scheme; deductions, it is recommended that an cases. To decrease risk, landlord Australian Tax advisor is consulted.  Administration of any by-laws for insurance is highly recommended. the strata scheme; Owners Corporation  To provide a grievance register. If the purchased property is Strata Titled Additional Costs for (a building with common areas and facilities for the use of all occupants of Foreign Owners the building), an owners corporation will be established for the building. A regular Foreign-Owned Vacant fee (strata levy) must be paid to the Residential Property Levy Owners Corporation to maintain these The Australian government charges an common areas. This can include annual levy for foreign-owned vacant elevators, foyers, swimming p ools and residential property (ghost tax). The levy spa, gymnasiums, plants and foliage, is equivalent to the FIRB application fee lighting, staircases, fences, visitor car imposed at the time the property was parks and security. purchased if they fail to occupy or lease for at least six (6) months of the year. A group of elected people manage the operations and decision-making of the Land Tax Surcharge common area of the property. A land surcharge is currently imposed on In most states, the owners corporation foreign owners in NSW (2%), Victoria comprises of an executive committee (1.5%) and Queensland (1.5%). The WA (generally ind ividual owners of the government has not followed suit, so a apartments) who make decisions on the foreign owner is only required to pay behalf of their owners. general land tax for their property.

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There are costs and taxes to consider when selling residential property in Additional Costs for Australia. Foreign Owners General Costs Capital Gains Tax Clearance Legal Fees Certificate Foreign and temporary tax residents are Legal fees include, but are not limited to, no longer entitled to access the CGT the costs for preparing a contract for main residence exemption from 7.30PM sale. The solicitor or conveyancer fee (AEST) on 9 May 2017. could be dependent on value of property,

and may vary between state and territory Although, existing properties held prior to as well as the particular s olicitor chosen. this date will be grandfathered until 30 The cost may range between $2,000 and June 2019. $4,000, plus GST.

A CGT withhold ing rate for foreign Real Estate Agent Fees investors is applicable for all contracts An agent fee is the commission paid by with a market value over $750,000 when the owner, to the agent, for selling the signed on or after the 1st July 2017. property—either tiered rate or a fixed rate. Do ensure you understand the This requires 12.5% of the purchase breakdown of the fee structure as price to be withheld by the purchaser and commissions will vary between states, remitted to the Australian Taxat ion Office and price point. Fees often range (ATO) unless a clearance certificate has between 2% and 3% of the value of the been provided by the vendor. The money property sold. withheld is a p ortion (not in addition to) from the agreed sale price.

Marketing Costs If a purchase price negotiated between a When an agent is selected to sell the purchaser and vendor is on an ‘arm’s DOWNSIZER property, the fee breakdown will often length basis’, then the purchase price stipulate the budget associated to the may be used as a proxy for market value. INCENTIVE marketing and advertising of the property. Additionally, there may be a The ATO can only grant a clearance Downs izers (aged 65+ years) period allocated to marketing with certificate to a vend or who is cons idered can make a non-concessional mult iple open house inspections over to be an Australian resident. (after-tax) contribution into their several weeks. Budgets for marketing, Superannuation account of up to $300,000 from the sale of media, as well as length of advertising Do note a residency status for tax their family home. should all be d iscussed with the agent to purposes is not necessarily the same as ensure maximum advertising potential. that for immigration purposes; or for the Introduced from 1 July 2018, FIRB. It is recommended to seek the legislation states the professional legal advice to further clarify property sold must be the Capital Gains Tax the residency definition for this person’s home (main res idence Capital gains tax (CGT) is a federal tax and be eligib le for the main legislation. residence exemption for capital levied on the gain or loss upon the sale of gains tax) and held for at least an investment property. The foreign resident CGT regime for the past 10 years. withhold ing tax applies to taxable The tax is imp lemented on the d ifference Australian property including vacant land, This will increase their tax-free between the cost of acquiring the buildings, residential and commercial fund limits. Couples will be able property, and the value when sold. The to contribute up to $300,000 property, leaseholds and strata title difference is then added to the income each, giving a total contribution schemes. per couple of up to $600,000. tax for the ind ividual or company for that financial year, and taxed accordingly with For further information, contact the those rates. Australian Taxation Office.

20 FOCUS ON PERTH Q4 2018 RESEARCH

In recent years, the federal and state governments have introduced foreign investor fees, tax surcharges and levies. Below is a summary of the current process for foreign buyers when purchasing, owning and selling Australian residential property.

The Process for Foreign Buyers when Purchasing, Owning and Selling Residential Property, Perth As at 1 October 2018

BUYING

Check if the Applies to all Property-specific; Must be made Developer has a Australian APPLY TO FIRB one application prior to purchase Exemption residential per property Certificate properties

+ PAY FIRB Above If within several APPLICATION FEE Below = $11,300 + fees Contact ATO if categories the based on AU$1M = $5,600 are tiered per over $10M highest fee value million applies

Decision is Must be in the Approval or fee AWAIT FIRB Strict penalties normally made best interest of does not secure APPROVAL occur if in breach within 30 days Australia sale

TRANSFER DUTY WA SURCHARGE (incl. Perth) on market value = 0%^

OWNING

AUSTRALIA > Equivalent to not genuinely on VACANT Applicable if application fee Annual levy rental market for RESIDENTIAL vacant or paid at time of 6 months of year PROPERTY purchase

No additional WA > surcharges payable

SELLING

A clearance Clearance CAPITAL GAINS TAX 12.5% of the Applicable to all certificate must certificates (CGT) on market purchase price contracts over be provided by granted to Aus. value withheld $750,000 the vendor residents

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Perth is placed well for liveability when measured against other cities around the world. In 2018, the Economist’s Intelligence Unit ranked Perth in 12th position from 140 global cities based on stability, infrastructure, education, health care and environment. Mercer placed Perth in equal 21st position, with Montreal, from 233

cities in their Quality of Life index. At the last Census, the ABS ranked Perth’s Cottesloe and Peppermint Grove in the top five Australian advantaged local HIGH RANKING government areas according to the relative socio-economic conditions of people LIVEABILITY. and households.

The total value added to the WA domestic economy (GSP) is projected to grow to 2.5% in 2017-18 and 3.3% in 2018-19 according to the WA State Budget, following the first annual contraction on record (-2.7%) in 2016-17. The major short term drivers being the export of LNG, iron ore, gold and lithium; while the med ium term drivers are household consumption on the back of improving consumer confidence, population growth and a strengthened labour market. The Government is spending GOVERNMENT an additional $1.1b towards Metronet rail projects, $184m on the Social and INVESTMENT. Affordable Housing and Jobs Package delivering 1,390 new homes and eight high - density Metronet orientated developments.

Business confidence has rallied in WA, reaching its highest level in more than seven years in the March quarter 2018, to sustain +8pts in August 2018, according to the NAB Monthly Business Survey. In the property sector, WA was considered the most stable in Australia and the only state to record an increase in the ANZ/PCA Sentiment Survey in September 2018 quarter. This improved confidence has flowed BUSINESS through t o the lab our market with internet job advertisements reaching a three year CONFIDENCE high in 2018. In August 2018, WA saw highest increase in full-time workers across GROWS. Australia securing 24,000 jobs with 2.6% growth between March 2018 and August 2018 —the highest since 2015.

Perth is the closest major Australian capital city to As ia, allowing easy connection to the European continent, and falls into the same time zone as capital cities such as Singapore, Hong Kong, Kuala Lumpur, Jakarta, Beijing and Shanghai. International departure capacity at Perth Airport expanded by 24.7% between 2012 and 2017 as reported by OAG Sched ules Analyser. Each year since 2012, Tourism Australia has ON THE ITINERARY calculated international visitors to Perth has grown on average by 5.1%. This is FOR INTERNATIONAL expected to grow further now Qantas has raised the benchmark to become the first VISITORS. direct airline operating a regular passenger service between Perth and London Heathrow—the second longest flight in the world at 14,498km.

The number of international students enrolled to study in higher educat ion facilities in WA grew 2.1% in the year ending June 2018 according to the Department of Education and Training. International school-aged students grew 6.7%. The SSVF has made the process of applying for a student visa in Australia easier to navigate.

While more recently, the WA Government released a new pathway for permanent GROWTH IN residency via the Graduate Occupation List (GOL). It’s designed for students who INTERNATIONAL have studied for at least two years at a WA university and have a full-time job offer STUDENTS. for more than 12 months (from the GOL) and can prove ‘proficient English’.

22 FOCUS ON PERTH Q4 2018 RESEARCH

Perth houses and apartments are relatively well-placed for value across the major Australian capital cities. The median value for an apartment in June 2018 was $379,000 in Perth, whilst was $737,000 and Melbourne $496,000 according

to APM. This was similar for houses in Perth with the med ian value being $556,500; RELATIVE VALUE TO significantly lower than Sydney ($1.14m) and Melbourne ($882,000). Those now OTHER MAJOR priced out of the these Australian East Coast cities have Perth back on their radar. CAPITAL CITIES.

The strongest annual capital growth was recorded for Perth apartments (1.7%) across the four major capital cities in June 2018 (APM). This is Perth’s best annual rate of growth since December 2014. Annual sales turnover picked up in September

2017, with local and interstate buyers taking advantage of the first green shoots of APARTMENT the recovering market. Perth has averaged 4% annual sales turnover growth since CAPITAL VALUE this time. GROWTH.

Bucking the national downward trajectory, Perth’s gross rental yields have rebounded to grow 20 bps over the year ending June 2018 to stand at 4.60% for apartments, and 4.30% for houses. Over the past five years, Perth has recorded an

average rental yield of 4.77% for apartments—outstripping the national average of 4.55%. Perth houses, at 4.43%, was closer to the 4.50% national average over this RENTAL YIELDS time. REBOUNDING.

With less apartment projects starting construction, the Perth market is now absorbing recently added rental stock. As a result, total vacancy has lowered to 4.2% at the end of August 2018, as reported by REIWA. Over the medium term, as the population growth p icks up and the economy strengthens, additional apartments LOWERED VACANCY will be required to meet the changing demand for low maintenance, high-density AS LESS A PARTMENTS living. Lifting the share of this type of product in Perth closer to the national average, BEING BUILT. will sustain the maturing global city.

Perth saw a net inflow of 1,000 HNWIs in 2017; taking up to one-tenth of the 10,000 new Australian HNWIs each year, according to data released on the Australian market by New World Wealth. This has been evident with prime property prices in Perth (defined as the top 5% of the market, by value) growing 2.7% in the year

ending June 2018. Similar to Perth’s mainstream market, the value proposition for a THE RISE OF prime property is relatively cheaper than other cities in Australia. In Perth, US$1m PRIME can buy 129 sqm of prime property in June 2018, while only 50 sqm can be PROPERTY. purchased in Sydney and 94 sqm in Melbourne.

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