Civic Heart South Perth sky
The end value of the Civic Heart is estimated to be $400m. Photo: Supplied.
  • The apartment developer recorded $34.6m in January sales - the highest since 2006
  • $9m in one day from Civic Heart project in South Perth
  • Enjoyed record sales in October, November and December 2020

Western Australian apartment developer Finbar Group Limited (ASX:FRI) has been continuing its run of record sales having reached $9m of sales in one day alone –  on the 25th January all towards the Civic Heart project.

This brings the total number of sales for the South Perth development to $88 million.

In addition to this, the developer has enjoyed record sales across October, November and December 2020.

The Civic Hotel project is expected to have an end value of around $400 million and will consist of two towers of 39 and 22 storeys respectively providing 305 apartments, four penthouses and 25 ground floor commercial tenancies.

Darren Pateman, Finbar’s Managing Director, says the level of sales in recent times signals a strong return to the market following great uncertainty amidst the pandemic.

He says factors such as low borrowing costs – on Tuesday the Reserve Bank decided to keep the cash rate at a record low level – along with ongoing stimulus measures and low stock levels nationally have made the company’s forecast for the medium – long term highly optimistic.

“Perth’s property market is really gaining momentum due to low supply, Western Australians returning home from interstate and overseas and buyers and investors who have been watching from the sidelines and deciding to get into the market before any further uptick occurs,” says Mr Pateman.

“Our recent strong sales performance and the fact that our team secured $9million in sales in a single day, gives us cause for optimism in terms of the medium to long term outlook for the local market,”

“Certainly, our sales performance in January is an outstanding result and an early indication of what may be to come for the Perth market,”

“We’re seeing very strong and competitive buyer demand, not just for Civic Heart, but across our other projects as well as the gradual return of investors as the rental market continues to heat up.”

Mr Pateman says he doesn’t expect this week’s snap lockdown to have an impact on sales, but he urges the State Government to reintroduce stamp duty rebates for developments under construction.

“We have done a great job in Western Australia in managing the pandemic to date, we just need that to continue so that confidence levels remain high and buyers and investors don’t lose their nerve due to any ongoing uncertainty,” he said.

At the close of business today, Finbar saw a modest 2.22 per cent increase in its share price to $0.92, still far below their peak of $1.77 in March 2014.

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