Sirona Urban is looking to relaunch its $165 million South Perth apartment project, as market conditions improve.
The West Perth developer pulled out of the project in July last year, citing rapid escalations in construction costs as the reason it returned deposits to buyers.
But Sirona Urban managing director Matthew McNeilly today said the company was considering its options for the 28 Lyall Street development, which has an approval in place until 2025.
“28Lyall is a project for which we still have a lot of affection because of its location and the design we spent a lot of time getting right,” he told Business News.
“Our assessment of South Perth hasn’t changed and we think there’s very strong demand.”
When Sirona Urban put the project on ice in July last year, Mr McNeilly said no-one foresaw the effects COVID would have on the building supply chain.
The developer proposed several iterations of the project, with current approval for a 38-storey, 98-dwelling apartment complex.
Mr McNeilly said it was “clear the cost escalations we witnessed a couple of years ago are settling” and the company would continue to monitor the market.
“The development application for the site runs until the end of 2025, which gives us time to look at our options.”
He added that Sirona may consider a “different mix of apartments” though prices were likely to be higher.
CoreLogic figures show that unit prices in Perth have increased by 7.2 per cent in the nine months to the start of October, to a median of $437,883.
Luxury apartments attract a far higher premium though, with two-bedroom units selling for more than $800,000.
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