Perth CBD renaissance to have massive implications for investors

While Perth has a reputation as a sprawling city but there is a drive from the State Government, that is supported by industry, to support Perth’s evolution into a more compact and connected city.

Providing more dense housing options and supporting infill development in a range of appropriate areas, is an important part of that evolution and will lead to greater housing choice.

When considering the heart of Perth, facilitating more people living within the city centre itself, is an opportunity to not only provide greater housing choice, but to support a range of social and economic benefits.

It has been proven in many global cities, that city centres that attract a diverse range of businesses, retail, tourism, entertainment and importantly residents, are a catalyst for broader economic growth, sustainability and liveability.

The imperative to drive urban growth in and around the CBD has been recognised by both the State Government and the City of Perth.  This is represented in the City’s 2023 Local Planning Strategy that includes an aim to reach a population of 55,000 residents by 2036 and an ambitious 90,000 people in the longer term.

In order to tempt residents to want to live in the heart of the city, there needs to be the amenity and services that a community needs and expects, including access to shops, local schools and other community infrastructure that meets people’s daily needs.

Perth City Link is one project that has aimed to reinvigorate Perth’s CBD and attract more people to the heart of the city.

Last week, the WA State Government announced the sale of the final four lots within the Perth City Link project area which, over the last decade, has worked to reconnect the CBD with Northbridge for the first time in over a century.

The rail line that essentially cut off the CBD from the popular Northbridge arts and hospitality precinct, was sunk in 2012, and that move created the 13.5 hectare Perth City Link redevelopment site that now features a range of commercial, residential, entertainment and hospitality offerings.

Projects to date at the site include RAC Arena, Yagan Square, Perth Hub and the new Edith Cowan University (ECU) campus.

Students pouring into city, need accommodation

The ECU campus is currently under construction and expected to attract approximately 10,000 students and staff to attend each day, which the government hopes will support greater economic sustainability for the local businesses in the surrounding area.

Several studies show that universities have a direct economic impact on their surrounding locations, as they are big purchasers of goods and services from the areas they are located within.  Of course, the new CBD campus is also likely to attract a contingent of international students who are expected to inject money into the local economy, and will also need a place to live.

International students also attract more overseas visitors, with family and friends likely to come and visit and in turn, spend money at local businesses.  

That is why the government is encouraging Expressions of Interest (EOI) for the four remaining lots in Perth City Link from developers with a focus on mixed uses, including student accommodation and other residential options given that desire to attract students to live close to the new campus.

Overall, the Perth City Link project is an important aspect of Perth’s renaissance, along with iconic redevelopment areas such as Elizabeth Quay, that has been a pivotal project in reconnecting the CBD with the city’s spectacular riverfront.

We are also seeing more activity at the eastern end of the city, with Finbar’s Garden Towers currently under construction and the Western Australian Cricket Association (WACA) grounds upgrade finally underway, that will add more public amenity for residents and visitors to the area.

It is also hoped a recent stoush over the location of a new primary school in East Perth will be overcome in order to deliver a much-needed education service to residents in the catchment area.

There may still be challenges to overcome in respect to construction costs and timeframes in particular, however, the opportunities are certainly on the rise for anyone interested in being part of Perth’s CBD renaissance.