Investor Demand Fuels Finbar’s Growth but Market Risks Loom

Finbar’s Market Momentum

Finbar Group Limited, a stalwart in Western Australia's apartment development scene for over 30 years, has revealed a compelling update on its sales performance and growth trajectory. The company reported a remarkable 68% increase in sales value for calendar year 2025, reaching $408 million, alongside a 66% rise in average monthly sales. This surge underscores Finbar’s ability to capture demand in a market buoyed by strong migration and investor interest.

Perth’s residential market is currently outperforming other major Australian cities, with dwelling values hitting record highs. The median house price stands at $810,000 compared to $565,000 for units, a gap that is expected to sustain apartment demand. Additionally, the rental market remains robust, with median rents climbing 5.8% year-on-year and vacancy rates at a tight 0.7%, further supporting investor confidence.

Strategic Growth and Project Pipeline

Finbar’s strategic focus on inner-city, transit-connected precincts aligns with evolving lifestyle preferences, emphasizing walkability and community integration. The company boasts a 100% project delivery success rate, having completed 79 developments totaling over 7,400 units, and maintains strong relationships with builders and financial institutions to ensure cost control and capital efficiency.

Looking ahead, Finbar’s five-year development pipeline is valued at over $1.2 billion, with approximately 1,500 apartments planned. Key projects under construction include Garden Towers, Bel-Air Apartments, and Riverbank Residences, with new launches like Palmyra West and Romeo Applecross scheduled for 2025 and 2026. The company’s strong $57 million cash position as of October 2025 provides financial flexibility to pursue further opportunities.

Investor Dynamics and Market Positioning

Investor activity has notably intensified, with 53% of buyers in the third quarter of 2025 classified as investors, a 65% increase compared to the prior three quarters. This resurgence is supported by low vacancy rates and rising rents, making apartments an attractive asset class. Despite the introduction of a foreign buyer surcharge tax in 2019, local buyers continue to dominate, accounting for 96% of sales.

Finbar’s commitment to delivering mid-market, attainable price-point apartments is reflected in the average sales value of $916,000 in 2025, demonstrating strong market engagement following a strategic product pivot. The company’s award-winning projects, including Perth’s tallest residential tower Civic Heart, reinforce its reputation for design innovation and sustainability.

Outlook and Considerations

While Finbar’s outlook remains positive, the company prudently highlights the inherent risks and uncertainties typical of forward-looking statements. Market conditions, policy changes, and economic factors could influence future outcomes. Nonetheless, Finbar’s solid foundation, proven track record, and strategic positioning in a growing market suggest it is well placed to continue shaping Perth’s urban landscape.