Investment opportunities in commuter suburbs drive Perth region’s spring property market
- Workers who are happy to commute to Perth are underpinning the rental market in Mandurah
- Investors represent about 40% of buying enquiries in Rockingham Beach thanks to the beachside suburb’s affordability and 1% rental vacancy rates
- Properties priced between $600,000 and $800,000 will attract plenty of investors to real estate in Perth’s north
In the Perth region this spring, investors are poised to capitalise on increased demand from commuters seeking affordable rentals, according to leading real estate group Raine & Horne.
Mandurah market update
“First home buyers have dropped out of the market, and investors are picking up the slack. We haven’t seen investors in such numbers for some time in Mandurah,” said Mr Vetten.
“It’s also a new wave of investors, who weren’t around before the GFC hit, and they like the City of Mandurah for its affordability and good yields for residential investments.”
Raine & Horne Mandurah is selling a renovated 3-bedroom, 1-bathroom house at 2 Cornish Way, Pinjarra, which is about 12 kilometres from Mandurah. Offers below $299,000 will be accepted.
“A property like this rents for about $320 a week, and a gross yield in excess of 5% will appeal to astute investors,” said Mr Vetten.
In addition to its affordability, the Pinjarra real estate market is benefiting from changing attitudes to commuting.
“Unlike in Sydney and Melbourne, the thought of commuting many kilometres to work has never been a popular option with Western Australian workers,” said Mr Vetten.
“However, more workers are happy to travel to the CBD but live in a fringe suburb such as Pinjarra, where it’s a good deal cheaper to rent and buy.”
South-west Perth market update
In Perth’s south-west, the number of properties for sale is still a little flat, although there’s no shortage of buying enquiries, led by investors and first-time buyers, according to Paul Curran, Principal of Raine & Horne Rockingham Beach.
“Investors represent about 40% of enquiries and first-time buyers about 20% of the market, and Rockingham’s affordability is the major attraction.
“Average three-bedroom houses with one bathroom are selling for around $370,000, and long-term vacancy rates below 1% are enticing investors.”
Raine & Horne Rockingham Beach recently sold a 3-bedroom, 1-bathroom house on an 809 sqm block at 11 Seacrest Street, Safety Bay, for $369,000.
“We have such low vacancy rates in Rockingham because it’s an affordable rental market, which is only 40 kilometres to the CBD, and we’re finding that more workers are prepared to make the commute,” said Mr Curran.
The extension of nearby Warnbro Centre is also a major boost for the Rockingham Beach investment market.
The centre has been expanded with the addition of 17,930 sqm of retail floor space, including a Big W and 22 new specialty shops. New car parks have been built, adding 532 car bays.
“The extension of Warnbro is a response to population growth in recent years, with plenty of immigrants from the UK relocating to Rockingham for work and lifestyle opportunities,” said Mr Curran.
North Perth market update
“We have sufficient listings and plenty of buyer enquiry, however concerns about job security and the slowdown in China and the resource sector is giving buyers and investors a reason to postpone their property moves,” said Mr Gallagher.
“Record low interest rates also mean that people don’t need to rush in; however, it will only take a small flurry of activity and more properties will start to shift.”
Properties priced between $600,000 and $800,000 will attract plenty of investor interest, according to Mr Gallagher. Suburbs in the city of Joondalup are expected to be the headliners this spring.
Raine & Horne North Perth has recently listed a 4-bedroom home at 86 Dorchester Avenue, Warwick, a suburb of Joondalup, for $699,000. Mr Gallagher expects this property to attract the attention of first-home buyers and investors.
“Warwick is very commuter-friendly thanks to its railway station and easy access to the Freeway, while other attractions include the suburb’s plentiful parks, shopping and schools,” said Mr Gallagher.
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Andrew Harrington, National Communications Manager on 02 9258 5400