The sunny coast of Western Australia gets its great reputation for a reason. It’s home to some of the world’s best beaches, a laid-back lifestyle, untouched wilderness and great weather. It’s also the place where property investment is on the move. For first-time homeowners or investors, WA is one of the most affordable states to capitalise on right now.
Despite the property market looking a little bleak since the end of the mining boom, the last 12 months have seen a significant improvement. It’s now more affordable for first-home buyers and investors to enter the market in WA than it was a year ago. Housing developments, job opportunities and all the wonderful things we love about Perth and the rest of our state make WA one of the most livable locations to set yourself up in.
2016 was a challenging year for the Perth property market but as things begin to stabilise, 2018 comes with fantastic investment opportunities and a more affordable market.
According to Peter Taliangis, an agent at Professionals Fremantle, investors and homeowners should be looking to trade up in this market if they can afford to.
‘Something that cost $600k two years ago might be purchased for $500k. I would recommend people looking to buy for investment purposes to look at the Metronet route and buy close to the stations planned. Otherwise, I would suggest sticking to the tried and tested principle of location location location– close to the city, river, beach and good schools are always going to be a booming market’, Taliangis says.
Considering investing in the west? Here are our some property hotspots to explore for future investment opportunities.
WA is all about its vibrant, yet relaxed lifestyle. If being close to the city centre is important for your property investment (and let’s face it, the perks that come with it are fantastic), Subiaco is a prime hotspot to put your feelers out in. Subiaco is an affluent and desirable area for many, however over the last two years, Subiaco’s commercial sector has created downward pressure on residential values. This commercial loss has affected property prices, making the location great value for investment and living opportunities.
The location is close to the city and public transport which are two very desirable considerations for homeowners, renters and investors. Despite the loss of the famous Subi Markets, which contributed towards the falling house prices, Subiaco has new plans in motion which are set to trigger new interest in the suburb.
Perth’s north has been leading the city’s property market recovery over the last 12 months. Sorrento, Heathridge, Joondalup and Carine are all on the rise as far as investment opportunities and sales go. But Kingsley has topped the lot for long-term growth in waterfront areas or strong family suburbs. *The median price in Kingsley is $459,000-$577,000, making it very affordable for first-time buyers and investors. It’s also close to the railway link, schools and major shopping centres, encouraging higher density living and a desirable, affordable lifestyle.
Often overlooked, Karawara is just eight kilometres from Perth’s CBD and is packed full of high-quality amenities giving it plenty to offer. A small suburb in the city of South Perth, it neighbours the more affluent suburb of Como and is adjacent to Perth’s largest university. There is good public transport and access to the area with two main arterials being Kent Street and Manning Road, which connects to the Kwinana Freeway.
The suburb also features a large variety of parklands as well as the popular Collier Golf Course. While there remains a high proportion of student housing due to its proximity to Curtin University, the area as a whole is currently undergoing gentrification, with upgrades of Waterford Shopping Centre leading the charge.
With the redevelopment of Fremantle’s city centre, the waterfront and Victoria Quay, Freo’s tourism and community facilities have been on the rise and have increased the housing demand in the area. Fremantle is all about its vibrant atmosphere and buzzing live music scene. Character homes make the suburb easy to fall in love with and it’s in close proximity to the beach, transport, schools and all of life’s essentials, making it one of the coolest towns in WA to live and invest in. *The median unit price is $471,000, with a rental yield of $360 per week, while houses $748,750, bring in an expected rent of $500 per week.
Scarborough is one to watch over the next 12 months. With the beach foreshore works almost finalised, the already desirable location has taken an even bigger turn in the property market. New infrastructure, cafés, fine dining and a beach-front swimming pool are just some of the features that make up the recent $100 million redevelopments. Scarbs has changed a lot since its rock n’ roll scene in the 50s but it still thrives on surf, beach and skate culture that both tourists and residents alike love. The latest improvements have only made the suburb a better catch for investors and homeowners.
Just 10 minutes outside Perth, Burswood has also seen some new redevelopments take place. The new Perth stadium, due to open early next year, has been underway in Burswood for some time now, helping to drive property sales and investment prospects. These improvements have not just seen the Burswood property market boom, but also its neighbouring suburbs. Belmont Park, Burswood Park Golf Clubs, new train stations and the $650 million Crown Tower developments ensure this location will bring in great rental yields in the long term.
We hope these insights put you on a path to securing a stellar Perth investment property. For more info on WA housing take a look at these five reasons you should invest in Perth and the top land developments in WA.
(*Note. All stats provided by Momentum Wealth)