Apartment developers SPECIAL REPORT - Business News
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Apartment developers
SPECIAL REPORT
F E AT U R E Design, innovation top priorities list Developers are leaving market uncertainty in the past and focusing on design and amenity to guide the next wave of Perth apartment projects. UPBEAT: Tanya Trevisan says 2019 has been a much more positive year for apartment developers than the previous 12 months. Photo: Gabriel Oliveira
FEATURE
Key takeaways
APARTMENT DEVELOPMENT
• New projects slow TOTAL NUMBER TOTAL NUMBER
to a trickle as OF APARTMENTS OF APARTMENTS
UNDER CONSTRUCTION APPROVALS IN YEAR
market moderates AT 31 MARCH 2019: TO 31 MARCH 2019:
• Sharpening focus 3,554 2,768
on design, amenity
Dan Wilkie
54% -61%
• Developers stake SOLD FROM YEAR TO
dan.wilkie@businessnews.com.au OFF PLAN MARCH 2016
claim to market
F
OR most of 2018, those
developers who managed segments
to get an apartment pro-
• Innovative
ject out of the ground in Perth
considered it a significant initiatives to 1,056
achievement.
Data from Urbis showed apart-
bolster sales, boost APARTMENTS
657
ment completions hit a cyclical affordability APARTMENTS
low last year, with 1,345 mul-
ti-residential dwellings being
delivered to market, a 53 per cent embracing the challenge and
fall from 2017. taking the opportunity to push
IN ACTIVE IN ACTIVE MOST ACTIVE
Urbis director of economics the boundaries of innovation PROJECTS WITH PROJECTS DEVELOPER
David Cresp said the number and design. AN END VALUE OF UNDER 11 ACTIVE
of completions was expected to Urbis director Chris Melsom, APPROXIMATELY CONSTRUCTION PROJECTS*
rebound to 2,864 in 2019, posing a who recently joined the firm $600M
challenge for developers seeking from architecture group HAS-
to square away sales and launch SELL, said there was currently
new projects. a higher focus on design than
“We’re four years into a resi- he’d ever experienced in Perth’s Source: Urbis
*Active projects: a development that
dential downturn in Perth, and apartments sector. has launched and has not yet sold out.
we’ve got a continuation of fairly “Industry has lifted the
high levels of supply, compared bar, there is a greater variety
to historical levels,” Mr Cresp of architects involved,” Mr “Aesthetics is part of it; it’s a “Ultimately, it’s going to be
told Business News. Melsom told Business News. bit like meeting your life part- someone’s home, you’re not just
Mr Cresp said sales during the “It’s really competitive, so ner, it’s about aesthetics initially selling a commodity.”
past 12 months had been histor- that means you need a point of and then other things come into At Norup + Wilson, the focus
ically low, with 1,169 apartment difference and a wow factor.” play.” on amenity for buyers has never
transactions well below what Iris Residential director She said much of Iris Resi- been sharper, according to direc-
he considered a more normal Tanya Trevisan said the push dential’s energy was applied to tor John Norup.
market of between 1,500 and for higher quality design was ensuring its projects were in The developer’s flagship pro-
2,000 annual sales. coming from two fronts – the desirable locations, not only in ject, The Precinct on Canning,
Investors had all but disap- incorporates features not only
peared, Mr Cresp said, while not seen in the Perth apartment
foreign buyers, who generally Aesthetics is part of it; it’s a market, but also not present in
helped spark a development’s any high-rise buildings around
progress by buying off-the-plan bit like meeting your life partner, the world.
at early stages, had been scared
off by the state government’s for-
it’s about aesthetics initially and Alongside technological inno-
vations such as smartphone
eign buyer surcharge, introduced then other things come into play controlled lighting and air-con-
in January. ditioning, Norup + Wilson is
“One really telling figure, and - Tanya Trevisan delivering 10 food and beverage
an indication that developers outlets at The Precinct, linked to
are responding to softer market state government’s efforts to terms of suburban location, but each of its 22 floors by a dumb-
conditions, is that there are 13 improve the sector through its also the specific area in which waiter system, with apartment
projects that had achieved pre- Design WA initiative, and devel- they would be built. owners able to order meals via
sales by March 31, with a total of opers seeking to establish a point “It’s looking at the amenity, that same smartphone app.
1,500 apartments” Mr Cresp said. of difference. the offer, and trying to stay up to “This is one of the first high-
“If we go back two years ago, “The concept of good design date to make sure what you are rise buildings in the world that
there were 33 projects with is intrinsic when you have the providing is ticking those boxes,’ actually has a dumbwaiter in it,”
almost 3,500 apartments in belief that you’re providing Ms Trevisan said. Mr Norup told Business News.
presales.” homes for people,” Ms Trevisan “The other things you have to “How I know that is I actually
Against that gloomy backdrop, said. have is good security, and we also went to all the big lift companies
developers could be forgiven “If you’re not producing a find owner occupiers are really in the world and asked them to
for adopting a pessimistic home that your buyers actually interested in minimising mainte- price a dumbwaiter in a 20-plus
stance, however, the reality is want to live in, they won’t buy nance and running costs because storey building and they all said
that Western Australia’s big- it, so you need to respond to the they are usually selling a larger ‘What? We’ve never done that
gest apartments players are market. freestanding house. before.’
FEATURE APARTMENT DEVELOPERS
Under construction Project | Suburb | Developer | Units
1 2
NV Vantage
Perth Rivervale
Fragrance Group Edge Visionary Living
401 212
3 4
Arthouse Apartments The Precinct
Joondalup Mount Pleasant
Edge Visionary Living Norup + Wilson
194 192
5
Sabina
Applecross
Finbar Group
164
Rank Project Suburb Developer Units
6 Affinity Rivervale Dragon Century 147
7 Essence by Blackburne Claremont Blackburne 143
8 Palmyra Apartment Estate Palmyra Finbar Group 128
9 Parallel Rivervale Laudis Developments 123
10 One Kennedy Maylands Finbar Group 120
Ranked by units | Source: Urbis
Design, innovation top priorities list
projects and also current market at an affordable price.
supply. “It’s a real gap in the market
“There is an undersupply of and this year we launch three
“Everyone designs apartment – hotels are where you can get 10 menus to choose from? None.” larger, high-end apartments new projects with $400 million
buildings and everyone in their food delivered to your floor. Perth’s second-biggest apart- in good locations,” Blackburne worth of apartments to fill that
advertising says it’s hotel or “With ours, you’ve still got to ment developer according to managing director Paul Black- gap.
resort-style living. walk to the lift but it’s as close the BNiQ Book of Lists, Black- burne told Business News. “The good thing is that, in
“We’ve never said that before to hotel-style living you’re ever burne, has shifted its focus to “People just don’t have many this market, buyers are being
because they’re just apartment going to get in an apartment the luxury end of the market, a options if they want a world- cautious and only buying
buildings, they’re not hotels building. Plus, what hotel has got reflection on the location of its class design in a prime location well-priced apartments from
APARTMENT DEVELOPERSFEATURE
Projects with pre-sales Project | Suburb | Developer | Units
1 2
Perth Hub Riverina
Perth Rivervale
Far East Consortium Finbar Group
314 125
3 4
Amara City Gardens Velocity
Booragoon Cannington
Iris Residential River Developments
124 120
5
Compass
North Fremantle
Mirvac
104
Rank Project Suburb Developer Units
6 The Beach Shack Scarborough Norup + Wilson 99
7 Little Lane Fremantle Yolk Property Group 70
8 M/31 North Coogee Match 56
9 Siskas North Fremantle Establish Property/Gary
Dempsey Developments 55
10 M/30 Mindarie Match 50
Ranked by units | Pre-sales at March 31 2019 | Source: Urbis
1,169
linked by a comprehensive retail “I feel a huge sense of responsi- flagship so far, I think there will
APARTMENT SALES precinct that will include a new bility to deliver something iconic be many more to come and we
PAST 12 MONTHS markets facility, as well as a here. have a few similar projects we
Source: Urbis wide range of food and beverage “I used to live in Subi and I are working on now.
outlets. love the area. While it is a large “We hope to be able to release
“Being right on Rokeby Road project and may be seen as our these to the market next year.”
reputable developers that deliver development, located at the old and Subiaco train station but
high-quality products.” Subiaco Pavilion Markets site. with views to Rottnest and the SEARCH Urbis
One of those new projects is Blackburne is creating a city is unprecedented,” Mr Black- There are 70 results from our index of 99,246 articles,
also Blackburne’s biggest-ever three-tower complex in Subiaco, burne said. 9,823 companies and 36,118 people
FEATURE APARTMENT DEVELOPERS
GOING UP: Canning Bridge is becoming a high-rise residential enclave as developers push forward on apartments plans. Photo: Gabriel Oliveira
Canning Bridge an apartment hotspot
A new high-rise precinct is evolving around Mount Pleasant and Applecross.
8.8 %
Dan Wilkie Monadelphous chairman John Rubino, Baltinas founder Barry Baltinas said he’d
dan.wilkie@businessnews.com.au which will deliver 164 apartments with an been attracted by the fundamentals of the
@dwilkie34 end value of $121 million in the project’s area, with the median unit price up 8.8 per
CRANES have become a prominent feature first stage. cent over the past 12 months, tracking well
of the Canning Bridge precinct, as favour- Ultimately, Sabina will comprise three MEDIAN UNIT PRICE RISE IN above the metropolitan area average for
able planning rules, proximity to the city stages and up to 453 apartments, with one the past decade.
and strong appetite from buyers combine tower of 30 levels, and two others reaching
APPLECROSS PAST 12 MONTHS ASX-listed developer Mustera Property
to create opportunities for project delivery. 26 storeys. 16 storeys, six higher than the height limits Group is also a recent mover on the pre-
The convergence of developers on the near- Across the road, BGC is building The prescribed for the plot. cinct, however, like Norup + Wilson, it is
city suburb is delivering on a vision unveiled Precinct on Canning on behalf of Norup Director John Norup said the Canning having to negotiate with planning author-
in 2010, with the City of Melville seeking an + Wilson, a $250 million, 22-level develop- Bridge area was one of Perth’s most excit- ities to get its project up and running.
increase of residential density by allowing ment designed by prominent architecture ing development neighbourhoods. Mustera had enlisted renowned interna-
development of up to 20 storeys, and more if firm Woods Bagot. “It’s an affluent suburb, the demographic tional architecture group WOHA to create a
certain community benefits are provided. The Precinct on Canning is Norup + is right and I can jump in the car and in less striking design for its Forbes Residences, how-
Those planning rules have attracted some Wilson’s second major project in the area, than 10 minutes I’m in the city for a meet- ever, the Metropolitan Central JDAP rejected
of Perth’s biggest apartments players, who following the completion of its Precinct on ing,” Mr Norup told Business News. the 20-level, $105 million proposal in March.
have proposed to build what would be the Ogilvie in 2016. “So it’s the perfect place.” Mustera took its case to the SAT, which
tallest buildings outside of the CBD. Norup + Wilson is also planning a third Mr Norup’s enthusiasm has not only after mediation requested the JDAP recon-
One of the first to move on the riverside development on nearby Kishorn Road, been matched by that of Finbar, with other sider the application, which had been
suburb was Stirling Capital, which recently which is subject to mediation in the State developers muscling in on the territory en recommended for approval by City of Mel-
delivered the first $90 million stage of its Administrative Tribunal after the Met- masse. ville planning officers.
high-end Cirque apartments, designed by ropolitan Central Joint Development The latest to join the fray is Baltinas, Earlier this month the proposal was again
MJA Studio. Assessment Panel ruled that its amenity which recently began construction of its knocked back by the JDAP, with Mustera
Construction is also under way at Finbar did not provide a sufficient community $19 million luxury development, Habitat taking the project back to SAT later this
Group’s Sabina, a 50:50 joint venture with benefit to allow the developer to build up to Residences. month to determine its path forward.
APARTMENT DEVELOPERSFEATURE
SEARCHENGINE WA’s LARGEST PROPERTY (BUILT-FORM) DEVELOPERS
...your key to WA business RANKED BY TOTAL VALUE OF WA PROJECTS CURRENTLY UNDER CONSTRUCTION ($M)
Change Offices No. of WA Total value of WA
from Year Total a) WA current pro- projects currently
previous Senior executive and est. in staff in b) inter- jects under under construction
Rank
year Company name title WA WA state construction ($m) Projects under construction in WA
Far East Mr Dan Sweet
1 — Manager, WA 2013 1 700 Ritz Carlton Hotel (200 rooms) and The Towers at Elizabeth Quay (335 apartments) $400 million
construction cost, $700 million end value
Consortium
Mr Paul Blackburne a) 1 1. ESSENCE, Claremont - 143 apartments, 6 commercial
2 Blackburne Managing Director 2003 60 b) 2 3 430 2. MARINA EAST, Ascot Waters - 91 apartments, 2 commercial
3. SUBIACO - 242 apartments, 16 commerical
Edge Visionary Mr Gavin Hawkins 1. Vantage RiversEdge Apartments - 217 apartments – GRV $130m ECD Aug 2019
3 Living Managing Director 2013 20 a) 1 3 390 2. Arthouse - 168 apartments – GRV $90m Jul 2020
3. Eden - 162 apartments – GRV $170m Oct 2020
1. The Terraces at Claremont on the Park, multi-staged $120m end value
Mr Simon Trevisan
4 Iris Residential Managing Director 2001 15 a) 1 4 390 2. Shenton Quarter, Shenton Park $140 m end value
3. One Mabel Park, Pollen Grove, Jolimont, $50m end value
4. Amara City Gardens, Booragoon, $80m end value
Mr John Norup 1. Precinct Apartments - Mount Pleasant (End Sale Value of $193 Mil) - Estimated Completion 2020
5 Norup + Wilson Director 2013 6 a) 1 2 300 2. Beach Shack Apartments - Scarborough (End Sale Value of $107 Mil) 99 Units - Estimated
Completion late 2020
Mr Matthew McNeilly 1. Kings Square Fremantle ($220m commercial office and retail), completion in 2020
6 Sirona Capital Managing Director 2009 13 a) 1 2 270 2. City of Fremantle administration centre ($50m), completion in 2020
Mr Darren Pateman 1. Palmyra Apartment Estate East- 128 apartments, expected completion FY2019 ($51.8m)
7 Finbar Group Managing Director 1996 18 a) 2 3 NFP 2. Sabina - 164 apartments, expected completion FY20 ($121m)
3. One Kennedy - 123 apartments, expected completion FY20 ($51.81m)
1. Indigo Fine China, Subiaco (Stage 2)
Mr David Pringle a) 1
8 Pindan Capital Managing Director 2010 21 b) 2 4 NFP 2. Haven, Ridgewood
3. The Heights, Kardinya
4. Parkview, Ferndale
Mr James Koh
9 Fragrance Group Chief Executive Officer 2014 1 200 NV Apartments + Hotel Tower, 401 apartments spread across 33 storeys
Mr Luke Reinecke 1. 26 on Charles (27x 1-, 2-, 3bdrm apartments and 2,000 sqm of commercial office over 8 levels,
10 Stirling Capital Managing Director 2005 15 1 2 80.0 $38m, completion late 2019)
2. Treehouse (50x 1, 2 and 3 bdrm apartments over 8 levels, $42m, completion Jan 2021)
Mr Andrew Sugiaputra a) 1
11 — Golden Group Managing Director 1995 15 b) 2 NFP Burswood Peninsula
Mr Barry Baltinas 1. Camilla Residences, 37 Mount Street West Perth - 15 Apartments, 2 penthouses
12 Baltinas Architect & Developer NFP 1 2 47.0 2. Habitat Residences 36 Kintail Rd Applecross - 14 apartments
Mr Dean Burrowes 1. Quest Apartment Hotel - $15m (Joondalup)
a) 1
13 MGroup Director, Development 2001 50 b) 3 3 40.4 2. Quest Apartment Hotel - $16.2m (Ascot)
Management 3. M/32 - $9.2m (North Coogee)
Ms Paige Walker General a) 1
14 Mirvac Manager, Residential 2001 70 b) 3 1 NFP Compass Latitude Leighton Beach
Development WA
Mr Ross Catalano 1. Edition Como, 23 apartments ($9m) completion 2019
15 Parcel Property General Manager, Built 2016 18 a) 1 3 NFP 2. Carrington57, 24 apartments ($7.5m) completion 2019
Form 3. Evolve Duncraig, 21 apartments ($7m) completion 2019
Mr Adam Zorzi
16 ADC_ Executive Director 2011 NFP 1 2 30.0 Fremantle Apartments, 22 apartments, construction commenced, completion Nov 19
1. Kingston, Australind
Mr Adrian Lester
17 Lester Group Executive Director 1995 2 1 4 25.0 2. Rapids Landing, Margaret River
3. Balwyn, Caversham
4. Edenlife Lifestyle Village, Australind
18
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50
All information compiled using surveys, publicly available data and contact with industry sources. Other companies may be eligible for inclusion. If you believe your company is eligible, please email: claire.byl@businessnews.com.au
WND: Would Not Disclose, NFP: Not For Publication, N/A: Not Applicable or Not Available.
Apartment developers
SPECIAL REPORT
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