Johnson Property Group

Get ready for the next phase of WA property growth  

Underlying confidence in WA’s business conditions is remarkably resilient given the challenges posed by rising costs of labour and materials but maybe that’s because there’s emerging evidence the workforce shortage is slowly improving.

Business confidence is firm and in the regions, Chamber of Commerce and Industry WA’s Regional Pulse reveals positive sentiment in mining and agriculture, with record winter crops forecast.

Regional businesses are still mindful about supply chain delays, workforce shortages and costs but there are substantial pockets of optimism. 

I see it in the WA infrastructure pipeline. When you add forecast growth in migration, there’s a strong case for investment in this next phase.

Our clients at Johnson Property Group ( JPG ) are focusing on off-farm assets and many are expanding their portfolios. When you are contemplating buying and holding assets for the long term, interest rates are less important than careful consideration of strategy when building a diversified property portfolio of residential and commercial property. 

As one area of focus, our clients are securing sites in strategic areas for development in the short to medium term.

We’re also mindful of costs.

Price spikes in labour and materials have created chaos in recent times, so we take a conservative approach with a buy and hold method. 

As things settle, JPG is, once again, moving to actively project manage the next round of developments. The future of WA residential property is all but assured with record vacancy rates, high demand and business and government clamouring for greater migration. It’s a secure bet for the risk averse investor and the stability of the residential sector is spilling over to commercial, which is experiencing a surge in enquiry because of strengthening yields and lower tenant vacancy.

Our client’s development sites are well located, close to transport links, industry and jobs and shopping and lifestyle amenities. That’s why our assets gain value at a faster pace and hold greater appeal for a range of buyers.

We’ve produced development yields of greater than 25 per cent on some assets. It’s another reason we prefer to develop from the ground up.  

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