Perth's having a property boom too and these ASX property developers are cashing in

Who said the only way to make money in Western Australia was in resources exploration and production?

Just like the eastern states, Perth has endured a property boom off the back of lending and construction incentives – led by record low interest rates along government schemes New Home Guarantee and HomeBuilder.

Perth’s property boom

In the past 12 months, WA property prices grew 9.8 per cent and while this is below the national average, units show in some respects WA is ahead of the national average.

The average unit rental in Perth was $397, only behind Canberra, Darwin and Sydney. The average rental yield was 4.4 per cent, only behind Darwin and tied with Hobart according to SQM Research.

ASX property developers capitalising

Perth-based apartment builder Finbar (ASX:FRI) is one of the few WA-focused property developer companies on the ASX.

Yesterday it told shareholders it is anticipating an $8.4 million net profit after tax, up 18 per cent from the previous year.

It credits a solid year of sales, having exchanged 486 completed and off the plan profits, adding up to $296 million.

Finbar also gave an update on its current projects having collected $105 million from its largest project to date, Civic Heart, despite having only just started basement excavation works.

The company also expects settlements to begin at its almost complete Dianelle complex in September but has already sold $27 million in flats at the development in Perth’s inner northern suburbs.

Finbar’s managing director Darren Pateman said the company was capitalising on the market conditions.

“We continue to operate in a strong completed apartment stock sale environment and are therefore committed to bring new completed stock to the market to resupply our diminishing stock pipeline,” he said.

The company has a cash position of $52.6 million and has committed to paying a 2 cent per share dividend, up from 1 cent in the prior corresponding period.

Although shares only rose modestly today, they are now above levels seen in mid-February 2020 just before COVID-19 began to wreak havoc on global markets.

Finbar (ASX:FRI) share price chart

Other ASX property developers

The most successful ASX property developer in FY21, Ultima United (ASX:UUL), also is building a foothold in Perth.

The company, which focuses on special disability accomodation, has surged from under 2 cents to 55 cents in the past 12 months.

It is planning a six-level NDIS-compliant facility in Bentley in Perth and anticipates ground-breaking in the coming months.

It is also planning projects at fellow Perth suburbs Cannington and Como.

A handful of other ASX property developers have properties in Perth among other states.

These include Ingenia (ASX:INA), which focuses on over-55s lifestyle community living and holiday facilities and Peet (ASX:PPC) which sells home and land packages in several states including WA.