Perth is on the brink of receiving a multi-billion dollar investment in private infrastructure, according to the research report titled Perth Private Infrastructure 2017 by Perth-based property investment advisor, Momentum Wealth. The money will be directed into shopping centres, apartments, and inner-city hotels.
Momentum Wealth’s research report details the city’s planned projects which are either already under construction or committed to. The projects include at least 40-large scale apartment complexes, 15 major hotels, and upgrades to shopping centres worth $4 billion.
According to the managing director of Momentum Wealth, Damian Collins, this imminent investment in private infrastructure could be a gold mine for property investors.
Mr. Collins said: “While these developments will create tens of thousands of jobs and buoy the Perth economy in the coming years, many of these projects will also enhance amenity in local communities, which will help to drive demand and prices for nearby housing.”
According to Mr. Collins, investors should act early if they want to maximise the profitability of their investment, as property prices are likely to rise in areas around where the investments will be made. However, we still may be waiting for quite some time before the effects kick in.
Mr. Collins remarked: “Although some of these apartment, hotel and shopping centre projects have started, the research report shows that the large majority of works are still ahead of us and will be completed over the next 2-4 years.”
Where Should You Put Your Money?
While the research report details the unprecedented building boom that’s about to take place, Mr. Collins advises investors to be vigilant when deciding where to make investments. He says investors ought to avoid investing in hotel developments.
“Hotel developments are typically limited to the Perth CBD, and while they will help stimulate the local economy by creating jobs, these projects won’t have a direct impact on property markets.”
Instead of focusing on hotels, Mr. Collins recommends investing in new apartment and shopping centre developments that will attract property hunters to the newly developed areas.
“The research report explains that investors should focus on metropolitan apartment and shopping centre developments that deliver more tangible benefits to local communities by way of new cafés, shops, restaurants and cinemas. New amenities that come with these projects will help buoy values of nearby housing as more people [will] want to live in these areas. It is these types of projects that investors need to consider when buying their next investment property.”
According to the research report, apartments in suburban areas will include retail, restaurant, and café offerings at ground floor level, and leisure outlets and main-street dining venues will surround shopping centres to ensure the surrounding areas stay active after 5 pm.
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