Media release: 9 February 2012

Raine & Horne ticks off New Year’s resolution with the launch of two offices in Perth

Raine & Horne opens two offices in Perth – Raine & Horne Kenwick and Raine & Horne NRAS in Kelmscott
Raine & Horne expects home values in Perth to rise by up to 5%
Lower interest rates will encourage first home buyers and investors into Perth real estate in 2012

Leading real estate group Raine & Horne has predicted real estate values in Perth to rise by between 3% and 5% in 2012, and is putting its money where its mouth is, with the launch of two new offices, Raine & Horne Kenwick and Raine & Horne NRAS, located in Kelmscott.

“The mining industry in WA will continue to go from strength to strength, while unemployment in the state is now under 4.5%,” says Angus Raine, CEO of Raine & Horne.

“We’re establishing offices in Kenwick and Kelmscott as they offer excellent housing affordability, and if the Reserve Bank cuts rates in coming months as predicted, we expect first home buyers and investors to go head to head in these suburbs in the early months of 2012.”

Stephen Arscott, Co-Principal of Raine & Horne Kenwick, agrees affordability will drive local buyer demand, but adds Kenwick’s proximity to the Perth CBD ensures its long term appeal with first home buyers.

“Kenwick is just 16 kilometres from the city and is well served with rail and road transport,” says Mr Arscott.

“In addition, parklands and shopping centre precincts have been improved, which will tempt families to consider a move to the area.”

On the issue of affordability, Mr Arscott confirms it’s possible to purchase 30-year old, three bedroom, one bathroom homes, from $270,000, while near-to-new three bedroom, two bathroom houses are available from $350,000.

“There’s also a former industrial region, which is being rezoned for residential housing along with some acreages in the heart of Kenwick that will be subdivided. This additional land will add to Kenwick’s pool of modern and affordable housing,” adds Mr Arscott.

Given the suburb’s affordability, investors are also starting to consider Kenwick. “Kenwick is very popular with tenants, and as a consequence it’s been a keen pocket of interest for investors,” says Mr Arscott, who confirms landlords can expect to return in excess of 5% gross yields.

Will Trainer, Principal of Raine & Horne NRAS, says property values in Kelmscott, which is located in the City of Armadale local government area, are set to benefit enormously from infrastructure investment over the last ten years.

Some of the major developments include transport upgrades such as Armadale Road, the completion of the Tonkin Highway, the Wungong Urban Development, the International Rowing Course at Champion Lakes and Forrestdale East Business Park.

“Additionally, Armadale’s initiative in rezoning large parcels of land shouldering the railway lines and the city centre has further encouraged large scale investment and development such as the expansion of the Armadale Shopping City, upgrades to the Kelmscott Shopping Centre and a six cinema multiplex,” says Mr Trainer, whose office will also market homes involved in the National Rental Affordability Scheme (NRAS).

“As a consequence of the shopping centre improvements, the region has been able to attract established franchising and retail groups, which is great news for families considering a move to Kelmscott.”

The award winning Wungong Urban Development, according to Mr Trainer, will have a major impact on the real estate market in Perth’s south east.

“Wungong covers an area in excess of 1,400 hectares and is expected to accommodate over 16,000 homes with a projected population of around 40,000 people over the next 15 years. This will significantly boost the residential land supply in Perth’s south–east sector,” says Mr Trainer.

Likewise, the construction of the world class International Rowing Course at Champion Lakes will be the centrepiece for a new urban village.

“With 15 hectares earmarked for the urban village at Champion Lakes, it will let businesses tap into opportunities generated by the international rowing course, as well the residents living in the nearby village, where modern four-bedroom, two bathroom houses will start from $450,000,” says Mr Trainer.

Apart from the significant investment in housing and infrastructure, the commencement of the Forrestdale East Business Park, covering 200 hectares, will prove a boost for the local employment market.

“Championed as a contemporary efficient and highly functional commercial estate, Forrestdale includes quality building codes, coordinated landscaping and is expected to accommodate up to 700 industrial lots with the potential to create more than 12,000 jobs,” says Mr Trainer.

“A further release of 190 hectares at Forrestdale is expected in 2012, and this parcel will be conveniently located on the new Tonkin Highway allowing convenient access to other major industrial areas as well as Perth Airport.”

-ENDS-

For further media information contact:

Angus Raine, CEO Raine & Horne on 0409 920 697

Kit Bashford, National Marketing & Communications Manager on 02 9258 5400