Home' API Magazine : December 2014 Contents DECEMBER 2014 n APIMAGAZINE.COM.AU n 27
suburb,” he says. “It’s now a nice
residential area close to town and
presents as a really good buying
opportunity for somebody who wants to
go in and secure a well-priced property
they may be able to add their own
Traditionally it’s been seen as the poor
cousin of neighbouring suburb Moonah,
but maybe those days are no more.
“People have started to realise you’ve
got this great suburb six kilometres to
Hobart... and it’s just got really
good affordability being so close
to the city,” he says.
f CLARENDON VALE
Clarendon Vale is located about
15 kilometres from the city
and is classed as Hobart’s most
affordable middle-ring suburb.
House prices seem cheap as
chips with the median value at
$158,609, and rental return is
pretty impressive at 7.7 per cent.
So what else do we know?
Zubin says the suburb
is predominantly government
housing with higher-than-average
unemployment in the area.
“So you’ve got to understand the
nature of the suburb,” he says.
“You have investors buying there
because they can buy cheaply and get a
pretty good return.”
But it’s not your typical mix of
homeowners, investors and tenants,
“Any investor would understand, the
higher the return, the higher the risk. So
they’ve got to understand what the risk
is in that suburb.”
nSYDNEY, NEW SOUTH WALES
The data shows Sydney’s middle-ring
suburb of Sydenham has a median value
The suburb is located about seven
kilometres from Sydney CBD.
Sharlene Purser, senior property
consultant for LJ Hooker Marrickville/
Dulwich Hill, has worked in the area
for 10 years and says the transition
of Sydenham during that time has
“Once upon a time nobody wanted to
live here,” she says.
With the growth seen through
Marrickville, Petersham and the likes
of its surrounding suburbs, suddenly
Sydenham became a more attractive
place to be. While the $800,000 price tag
may buy you a unit in the surrounding
suburbs, Purser says in Sydenham you
can still secure a house.
“Prices have just gone crazy. We’re
auctioning units now, whereas four or
five years ago it really wasn’t the done
thing,” she says.
The rental yields may leave a little to
be desired at around 4.5 per cent but
based on the way the market has been
going, Purser says capital growth will
more than make up for it.
nPERTH, WESTERN AUSTRALIA
f VICTORIA PARK
Victoria Park is hipster heaven and
might be one of Perth’s coolest places
to be. You’ve never seen so much
legitimised street art, according to Derek
Baston who is the director of Baston &
“Men with beards, tailored pants and
people on push bikes,” he says.
“So really the demographic of the
people who are using the community
“They’re not necessarily homeowners,
but they’ve legitimised the gentrification
that’s been happening in the suburb for a
Victoria Park’s epicentre is the Albany
Highway café and restaurant strip, which
runs three and a half kilometres
long, stretching from Perth’s CBD.
“And that strip in the last
three years has just come to life,”
“Victoria Park is the cool
spot to be proximal to the
CBD, and you’re right, it does
offer great value from a real
estate perspective. Relatively
speaking it’s cheaper than other
inner-city options that offer the same
Huge advocates of the local
community, Baston and his wife, who is
also his business partner, have worked in
the suburb for 13 years.
“We live here, and our children go to
school here,” he says.
The West Coast Eagles have recently
dropped $50 million for a new training
facility in the suburb and a new town
centre project is also on the cards.
nWHICH TO CHOOSE?
Darwin, Melbourne and Sydney have the
highest ‘affordable’ price points for their
inner-ring suburbs according to the data.
Kusher says Sydney and Melbourne
buyers who are perhaps priced out of the
market should maybe look further afield.
“Whether that’s another capital city
like Brisbane, for example. Most people,
us included, think Brisbane’s due some
growth,” he says.
“And if you look at the markets of
Brisbane, Adelaide and even Hobart
you can find opportunities. From
an investor’s perspective I guess it’s
looking at where has the capital growth
potential,” he says.
In terms of the best performers?
“I don’t think there’s any surprise that
you’re looking at the markets in that
inner ring,” Kusher says. API
Affordable Metro Buys n FEATURE
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