With recent property prices peaking in Sydney and Melbourne coupled with flat property conditions in Perth, there has been speculation recently that Perth is now the place to consider for investing in property. We all know that property investment has a number of risks so when considering investing in Perth, are there any areas that have the edge over other locations?
A recent report by Damian Stone of Y-Research shone the spotlight on Perth activity centres to assess the diversity of property uses in each. Of the 24 activity centres assessed, Joondalup came out on top with the highest diversity score of 90 out of 100 on the Activity Centres Diversity Index.
At a recent business forum held in Joondalup, Mr Stone said: “The Joondalup City Centre through careful long term planning and infrastructure delivery has grown to accommodate Perth’s largest shopping centre, major university and health campuses, solid office and industrial property fed employment bases and the largest apartment market in the northern suburbs. This diversity of property uses has given Joondalup a competitive advantage over competing centres which should fuel future growth over the next decades”.
Mr Stone also chaired a panel discussion at the forum in which property analyst and commentator Gavin Hegney described Joondalup as a “40 year overnight success” while referring to the long-term planning initiatives that have resulted in the current high level of property diversity. Fellow panellist David Schwartz, Director of Primewest, said a new eight-storey building, currently under construction by Primewest on Davidson Terrace - which will house more than 800 workers from the Water and Environmental Regulation departments and the Environmental Protection Authority Office - was a “great opportunity” for the City.
Mr Schwartz outlined how securing the departments of water and environment as tenants of the Primewest building would lead to additional ancillary and consultancies seeking to locate nearby.
“Those people are going to need offices and they’ll need services so it starts attracting and getting a natural growth and momentum,” Mr Schwartz said.
Property and construction investment in Joondalup is not a new phenomenon and has been happening consistently over the last decade. The City of Joondalup has attracted an average of about $360 million per annum in building approvals over the last 10 years.
Around 45 per cent of these building approvals have been non-residential – including retail, health, education and a range of other commercial uses – totalling about $1.7 billion in non-residential approvals over the 10-years to December 2016.
With a number of large projects either under construction, approved or in advanced planning stages, including the Primewest development, the proposed Joondalup Performing Arts and Cultural Facility, Ocean Reef Marina and the proposed City Centre Development in Boas Place, the City of Joondalup is well placed to continue attracting a significant proportion of Perth’s commercial property investment.
The City recently released its draft Joondalup Activity Centre Plan (JACP) for public comment, which once adopted, will facilitate the development of the City Centre over the next decade and will further encourage high density residential and mixed use development, with plans for even higher quality public spaces to attract businesses and residents to the City.
Joondalup is unique in that it is a planned City that has a distinct West Australian character articulated through its landscape. It is a commercial, civic, entertainment and cultural hub with retail and professional services, tertiary educational institutions, police training facilities and a health sector that services the broader north-west region providing unique opportunities for Western Australians to study and work.
Joondalup has become the Capital of Perth’s north and with the regional population forecast to continue expanding by almost 10,000 per annum, more and more residents and workers will choose Joondalup as their CBD instead of travelling to Perth.
The JACP envisages an increased urban intensity with more and taller buildings in the next era of the City’s development and anticipates a doubling of the current non-residential floor space by 2050. The wide streets and urban grid of the City Centre allow for redevelopment and there are also large areas that are yet to be developed providing excellent opportunities for future activity.
It is now time for the City to mature as a self-sufficient employment centre and a location of choice for strategic and knowledge based business. The JACP proposes a range of initiatives to stimulate development and intensity to support employment growth while enhancing the liveability of Joondalup as a modern, connected and prosperous City.
Overall, when it comes to diverse property investment opportunities in Perth with a plan for success, Joondalup has the Edge.
By Garry Hunt
