127/181 Adelaide Terrace, East Perth WA 6004

Perth CBD fringe | Heritage overlay present | Strong rental yields | Long-term tenant base This unit presents a competitively priced entry into a large, established building with demonstrated rental demand, evidenced by yields above 5.5% from comparable units. Its position within the Highgate Primary and Bob Hawke College catchments solidifies its appeal to a family or professional tenant profile, a demand segment supported by the building’s high proportion of residents staying over three years. The significant divergence between the listing price and the automated valuation estimate suggests potential undervaluation, making it a strategic purchase for a buyer seeking income with growth exposure in a central location. Specific risks include the heritage overlay, which may constrain future alterations, and the flood overlay, necessitating specialised insurance due diligence. The wide dispersion in recent sale outcomes within the building, from negative to high annual growth, underscores that individual unit attributes critically impact performance. Acquire this property as a long-term holding to leverage its school catchment appeal and strong yield; its commercial logic is compromised by a short-term hold given transaction costs and market variability. Recent sales in the building show highly varied performance: – Unit 139: $710k, 10.00% annual growth (2-year hold) – Unit 150: $905k, 0.18% annual growth (15-year hold) – Unit 178: $1.5m, -2.05% annual growth (7-year hold) – Unit 53: $835k, 0.52% annual growth (15-year hold) This dispersion confirms that blanket building-wide growth assumptions are flawed; value is dictated by specific attributes like parking, aspect, and floor level. The sale of a comparable two-bedroom unit at $905k supports the listed price’s credibility, while the superior growth of Unit 139 highlights the potential upside for well-positioned units.