Consumer

New brew on the block

Let’s face it; life’s too short for instant coffee.

It’s hard not to fall in love with Perth’s growing café scene.  It could be a hole-in-the wall café in Fremantle; a cosy café bookstore in Northbridge; or relaxed café dining with exquisite beachside views in Scarborough.

As long as an expert barista is working their magic, locals will patiently queue for their well balanced flat white to kickstart their morning.

And, from what Perth’s real estate agents residents are telling Inkwire, Perth and Mandurah people are willing to pay the price to live a short walk from their favourite cafe.

Lance Davy

Lance Davy

Real estate branch manager for Remax Mandurah, Lance Davy, says high rise apartments are being built near café strips because people want their own hit of coffee culture. 

“As new café strip precincts are developed we are seeing an increasing number of buyers interested in living and enjoying this lifestyle whether inner, city or coastal,” Mr Davy says. 

“If we look at more established café strips in East Perth and Subiaco, there is no question about it.

“People want to live in a  five kilometre radius of that café style attraction.

“Apartments that are in close proximity to café strips increase in value because of commercial benefits.”

Mr Davy says investors get greater rent return, and residents are in a location where they can do more.

Jordan McArthur

Jordan McArthur

Business development manager for South Perth’s Yaran Property Group, Jordan McArthur, says that people are seeking a higher quality life that café strips tend to facilitate.

“People love to be in walking distance from coffee strips because they have demand not just for a good cuppa but because they are generally trendy areas,” Mr McArthur says. 

CAFE STRIP HOTSPOTS

Suburbs that are situated around well established café strips are reaping more than just easy access to a beautifully brewed cappuccino.  As more people desire to live near coffee hubs, the subsequent increase in demand for those areas inflate property prices and rent return.

Payne Reality Rockingham agent Kristy Zaglas says suburbs situated close to Perth’s CBD have a mid to high socio-economic demographic and suburbs experiencing growth are affected by café strips. 

Kristy Zaglas

Kristy Zaglas

 “In the metropolitan area, suburbs such as Subiaco and Leederville are currently experiencing significant growth in ‘lifestyle’ culture and prices of properties have increased,” Mrs Zaglas says.

 “It is estimated that property [prices] increases [sic] around 10 per cent when located in the vicinity of a café strip.

“A property situated in a location that in itself provides its own economy is always an advantage.”

Real Estate Institute of WA Executive Communications Manager Brian Greig says property owners, including investors, tend to find that capital growth is best when a property is located near good infrastructure – which includes cafes, shopping centres and public transport. 

“There are hundreds of cafe strips around WA but the main metropolitan ones would be in Subiaco, Mount Lawley, Fremantle, Victoria Park, Maylands, Northbridge, Leederville and Mt Hawthorn to name a few,” Mr Greig says.

Barista, Julian Dizilia, claims coffee is the lifeblood of a city and, as people demand more cafes, little hubs begin to emerge across Perth and the city begins to slowly evolve around these hubs.

 “Places like Fremantle have gained a reputation for coffee and so now many people choose to live close by,” Mr Dizilia says.

 “Coffee is the second biggest traded commodity in the world.”

I definitely don’t see this demand dying down anytime soon.”

COFFEE NOT FOR EVERYBODY

But the café lifestyle doesn’t appeal to everybody.

Mr Greig says many people like to be near a café strip, but equally don’t want to be too near parking congestion, noise or bars, so it depends on the personal preference of the buyer.

“Some strips are ‘noisy and funky’ and others are more relaxed and subdued,” Mr Greig says.

Mrs Zaglas says cafe strip locations suit people who like the bustling city life and have few, if any, dependents. She says the normally smaller dwellings, such as units and townhouses, available in such spots do not normally suit large families.

 “Similarly, investors will seek property close to café strips as they are more likely to secure a tenant who works in close proximity and would be seeking a rental close to home,” she says.

Categories: Consumer, Food, Property

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