The WA Not For Profit has increased prices for the second stage of its independent living units at the upmarket $140 million development, 12km southwest of the Perth CBD – but they are not proving to be a deterrent for eager buyers.
As we reported here last year, the first stage of 20 units – priced from $850,000 up to $3.3 million for the penthouse – already sold out on their release in March last year.
The second stage of 56 apartments also sold out within three weeks – despite the prices increasing from $900,000 to just over $4 million.
“We did have to increase the prices to our Stage Two residents because of the price of construction,” said Managing Director David Cox (pictured).
“Unfortunately we had to pass some of that onto the residents, but they saw that the local area property prices are going up exponentially so there was very little resistance.”
Stage Two includes the 56 apartments plus a pool, gym, bar, medical centre, arts precinct and a commercial restaurant which has already been leased out.
The organisation is also seeing a shift among the residents that have committed to the second stage of apartments.
“The initial cohort wanted immediate accommodation,” explained David. “So they saw that they were having a change in life and they wanted that accommodation quickly. Whereas with Stage Two, they knew that they were going to be waiting for three years for this accommodation so they are there for the long term and tend to be a lot younger – there are people in their early sixties.”
Interestingly, many of the residents are also opting to pay the DMF upfront – capped at 12.5% – instead of the traditional model, which sees residents pay 20% over five years.
“We thought that the residents wouldn’t take it up because some of them are paying $600,000 as an upfront DMF, but they are not even blinking,” said David.
“They keep all the capital gain or loss as well so you can see why that it is quite appealing for those residents.”