You may have noticed there has been a fair bit of construction going on in Palm Beach over the last few years. This year alone has seen the rollout of Sunland’s Magnoli townhouses, a development which includes two 12-storey towers, six terrace houses, retail shops and parkland.
Additional development includes DG Project’s Canopy, The Jefferson and Sable on Palm with more construction projects currently being negotiated and planned. And while stage 2 of The Pavilions has been abandoned, construction on a new $60 million retail development began in March of this year. The new shopping mall will be home to a Coles supermarket, a variety of speciality stores and underground parking all focused on enhancing Palm Beach’s emerging reputation as a trend-setting foodie hub.
All this investment and construction shows that the popularity of Palm Beach as a destination is expected to increase. Palm Beach is undergoing significant growth and the local population is tipped to rise from 14,000 to 22,000 by 2036.
So how does all this development affect nearby property prices?
In the short-term—during the construction phase—property prices are likely to be negatively impacted. Living next door or across the road from a construction site, is not attractive to potential buyers.
However, if you are not planning to sell your property immediately, the effect on property prices is positive. An increase in the number of units and townhouses in Palm Beach means there will be a decrease in the number of detached houses available. This scarcity of free-standing homes is likely to increase the value of the ones that are left.
Retail development projects, like Pavilions Retail, will bring new business to the suburb and the knock-on effect is likely to see an improvement in services, local transport and infrastructure. These factors will all combine to help lift the market value of properties in the area.
What’s more, new luxury new developments like Sable on Palm or The Jefferson add to demand for the location which in turn can have a positive impact on land prices.
While some Palm Beach homeowners may be concerned about the development happening in the area, there are many positive impacts, not least of which will mean higher demand and an increase in property prices for existing homes as well as new developments.
If you’d like more information on the Palm Beach property market call Alex or Jason today. As locals, we have been helping homeowners buy and sell properties in the area for more than 20 years.