The suburb is the seventh best performing real estate market for growth in Australia since 1993, noted the report. Nearby Usher came in thirteenth with an annualised increase of 1,117.9% over the last quarter of a century.
The report, titled 25 years of housing trends, was compiled by CoreLogic and reveals that property values across Australia have climbed up to 1,496% over the last 25 years, leaving long-term homeowners with a glut of home equity.
“Real estate values across Australia are driven by lower interest rates and unemployment, increased infrastructure investment, along with a shortage of new properties and growing demand,” says Angus Raine, Executive Chairman, Raine & Horne
“The population of Australia has increased by almost 40% since 1993, and these people need somewhere to live, and this demand is driving up values across the country.”
The CoreLogic report shows that in 1993, the median property price in Glen Iris was $23,5000 and it is now $310,000. This increase is equivalent to an annual average growth of 10.9% over the past 25 years.
Meanwhile, the median real estate price in Usher in 1993 was $23,400, and it has grown to $285,000 in 2018. This is an annualised growth rate of 10.5%.
Alec Marra, Principal of Raine & Horne Bunbury, said several factors including Bunbury’s relative affordability in 1993, along subsidies for first home buyers since 2000 have contributed to the steady rate of growth.
“In the early 1990s, state land in Usher and Glen Iris were made available for housing mostly targeted at first time buyers,” said Mr Marra.
“Interest in Glen Iris and Usher ramped up in 2000 when the Federal Government introduced the $7,000 First Home Owners Grant and had been sustained ever since by the different forms of the subsidy and stamp duty breaks.”
Currently, only first home owners buying or building a new home in Western Australia may apply for a grant of up to $ 10,000. In addition, there is no stamp duty for eligible first home buyers who purchase a new or existing dwelling under $430,000.
While first home buyers have enjoyed some growth, Mr Marra said those investors who took the plunge in Bunbury in 1993 have achieved decent returns.
“Apart from annual average returns above 10.5%, investors have also achieved average rental yields around 5%. In combination, the capital growth and rental yields generated by a Bunbury property stack up very well against other investments such as shares,” said Mr Marra.
“Investors are still looking to pick the eyes out of the Bunbury market, and in general, they are cashed-up, and don’t need to go to a bank for finance.”
Moreover, Mr Marra believes the Bunbury property market is about to surge again following the announcement by mining giant BHP that it intends spending $5-6 billion on a new mine.
“In total, there is about $15 billion of new mines to be built. This activity will create job opportunities and create demand for entry-level homes in Bunbury and rental accommodation,” Mr Marra said.
For all your sales and property management needs in Glen Iris, Usher and Bunbury, contact Raine & Horne Bunbury on 02 6685 6588.For all your sales and property management needs in Glen Iris, Usher and Bunbury, contact Raine & Horne Bunbury on 02 6685 6588.