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Carine Rise – A Momentum Wealth Development Case Study

Due to recent changes to zonings and WA town planning regulations, many sites in Perth previously only suitable for villa and townhouse style developments can now be developed into small groups of apartments. Typically, these apartment groups contain 5-40 units and are limited to 2-3 storeys.

This increased lot yield has a significant impact on profitability and also meets the growing market demand for low-maintenance, affordable properties in quality locations. However, the sudden increase in apartment project activity has seen some areas become quickly over-supplied and has led to resistance to this style of project from some local councils.

In this rapidly evolving market, it is crucial for property owners to work with experts who understand this style of development. These development projects require vigorous due diligence and a proactive town planning approach to ensure that the best outcome is achieved.

One issue for investors to consider is the resale process and market demand for the finished properties. Many overseas investors are used to high-density living and so are quite confident to invest in large scale developments. However, it’s important to remember that apartment living in Perth is not as established as other locations and so investors should take care with the location of their development site.

Momentum Wealth’s research team closely monitor both existing supply (established properties) and upcoming supply (development/building approvals and off-the-plan sales underway) to ensure that our acquisitions team focus on locations which offer the best return with the lowest risk for our investors.

We believe that boutique apartment projects (end value $4 million to $25 million) offer unique opportunities in the Western Australian market.

Carine Lot 44 Unit 1

(Photo: one of the properties of the Carine Rise project)

CASE STUDY

When Momentum Wealth managing director Damian Collins heard about the Landcorp land release at Carine Rise, he identified an opportunity to take advantage of changing planning regulations and also meet a growing market demand for apartment living in the Carine area. “Some Carine residents nearing retirement are finding their properties to be too much upkeep but this doesn’t mean they want to move to a city apartment,” said Mr Collins. “They want to remain in the area, close to their family and all the lifestyle amenities they love. It made sense to us to explore the opportunity to develop a product for this ‘empty-nester’ market.”

The result was a development of 16 apartments and three townhouses across three lots, designed with premium finishes and features, which appeal to ageing occupants. With a price range of low $500,000’s to more than $1 million, the project achieved 12 presales in the first 6 weeks and has now proceeded to construction.

This project was developed by a syndicate of 13 investors. “Buying as a syndicate allowed the investors to pool their capital to access this high-return investment opportunity,” said Mr Collins. “Most investors could not access this scale of project on their own, so this was a great outcome for everyone.”

    The Momentum Wealth planning and development team have been involved in the Carine Rise project from the outset, providing acquisition advice and complete project management service to the investor group.

    How can we help?

    Our specialist team can help property owners in all stages of their property development journey, including:

    • Securing finance
    • Site acquisition
    • Development feasibility investigations (for both new purchases and existing properties)
    • Project management

    If you would like to enquire about a specific site or to book a time to talk to us in more details, contact us today.


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