The WA places 'immune' to property price drops

Three places in WA, including two regional centres, have been listed as  "bulletproof" places to buy property.

Inglewood, South Hedland and Derby are considered areas "immune" to drops in  home prices, according to Australian Property Investor magazine.

API deputy editor Shannon Molloy said the three places were among 152 across  the country that ended each year in the past decade in positive property price  territory.

"That's 2003 through to 2012 without a drop in values at the end of each  year," he said.

While some suburbs might have had the odd month of backward movement, they  all rallied to ring in each New Year stronger than the last.

"There are a number of factors at play, including the affordability of  housing, consistent demand for accommodation and proximity to diversified,  strong economic drivers," Mr Molloy said.

Victoria dominated the list, with 59 of its suburbs included on the list.

Inglewood's close proximity to "fashionable" Mount Lawley was given as a  reason for the suburb's stable performance.

There has been 9.3 per cent growth in Inglewood house prices in the past 10  years and gross rent yield is 4 per cent.

South Hedland, more than 1600 kilometres from Perth in the Pilbara has seen a  more than 20 per cent increase in house prices in the past decade and rental  yield is 11.3 per cent.

According to API figures in Derby, in the Kimberley, where the median house  value is $519,500, prices have increased by 15.7 per cent in the past  decade.

The magazine also listed Derby in an elite category within the list that they  dubbed "the immortals."

Their data from the past decade shows Derby is one of 24 suburbs and towns  that have not experienced backward movement in their median prices over any  measurement period, whether looking at results at the end of the month, quarter  or year.

However the Real Estate Institute of Western Australia has urged people to do  their homework and not rely on these sorts of lists alone when considering  purchasing property.

REIWA president David Airey said growth prospects and long term price history  were some of the aspects that should be considered.

"You should always seek advice from real estate agents within the area you  are interested in," Mr Airey said.

Source : WA Today