Strong demand for Amara City Gardens
Booragoon on the rise in Perth’s inner ring
MaxCap Group to provide $53.5m construction funding facility
8 June 2021, Perth – Leading commercial real estate financier and investment manager MaxCap is backing a high-quality residential development within the established inner residential and commercial suburb of Booragoon in Perth, Western Australia.
‘Amara City Gardens’ is a luxury style residential development comprising 124 residential apartments and five commercial units over 15 storeys. Along with providing 232 car bays, the development also provides attractive inhouse amenities such as a yoga tai chi deck, gymnasium, sauna, wine cellar and residents dining/BBQ pavilion.
The project is being developed by Iris Residential with construction undertaken by BGC, one of Perth’s leading building companies.
“We are delighted to be able to deliver a $53.5 million funding package via the MaxCap First Mortgage Construction Fund for the ‘Amara City Gardens’ Project,” said Mr Ben Jones MaxCap’s State Director – WA. “Iris Residential has a proven track record of developing projects of similar scale and quality. This is the second project MaxCap has funded for Iris Residential with the earlier One Mabel project in Jolimont, WA successfully on track for completion in November 2021.”
Mr Jones pointed to the strategic co-location of the Project immediately adjacent to one of WA’s major regional shopping centres, Booragoon Westfield (formerly Garden City), with excellent transport links, employment hubs and community infrastructure. He said that the strong pre-sales of ‘Amara City Gardens’ demonstrated the benefits of the project, with incoming purchasers attracted to the convenience and amenity aspects.
“This is about quality and convenience; along with adjoining Westfield Booragoon, ‘Amara City Gardens’ is steps away from Booragoon Bus Station linking Bull Creek Train and Bus Interchange, providing quick, easy access to the Perth CBD, Murdoch University, and the world class Fiona Stanley Hospital. On your doorstep is a suite of health and community amenity, including the City of Melville’s Leisure Recreational Centre, Melville Aquatic Centre and Applecross Senior High School.
Mr Jones noted that there has been a structural shift of older generations downsizing from family homes and showing greater appetite for apartment style living – with Amara City Gardens offering an attractive range of health, community and convenience amenities.
Amara City Gardens – Pre-Sales Overview
MaxCap confirmed that presales activity was positive. With construction only commencing in January 2021, the project is now over 60% presold.
“Underscoring these results, there is strong demand for ‘Amara City Gardens’ and that’s notable in the context of the value of established apartments in Booragoon having trended upwards over the last 12 months,” said Mr Jones.
“We see this trend continuing as the area continues to gentrify and demand continues for more modern medium and high density living.”
Mr Simon Trevisan, Managing Director Iris Residential said “ We develop homes in prime locations that are designed to improve our clients’ lives. Amara City Gardens exemplifies this ethos. It is a rare location connected to Western Australia’s best shopping centre, Westfield Booragoon. We are very pleased to be partnering with MaxCap Group to deliver such a high quality project.
“Amara has easy access to major entertainment, retail, sporting, healthcare and education facilities. In most cases they are walkable from the soon to be new home for our residents. The apartments themselves are larger than normal with big balconies and designed to make the most of natural light and cross ventilation as well providing security and comfort.
“The building has significant internal residents’ amenities too. All of these things combine to give back our residents time from their busy days and options to enjoy that time in comfort”.
Western Australian Market Update
MaxCap said that Perth, Western Australia (WA) remains among the most resilient of all the Australian capital cities to the impacts of COVID-19.
Over the last 12 months, Western Australia has seen a significant swing in momentum benefiting from the buoyant resource sectors, government stimulus and home building activity.
With WA’s annual population growth rate now the second fastest in the country, the WA jobless rate now tracking at 4.8% and REIWA recording a current residential vacancy rate of 0.9%, Perth will continue to see price growth across most residential markets.