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API MARCH 2014
MARCH 2014 API
apartments and instead look for houses
at affordable prices, yet still be within 20
kilometres of Perth, there are generally
“The first choice is an older established
house on a larger 700 to 800 square-metre-
block, or occasionally a new, smaller
house on a tinier 200 to 300-square-
“While in many areas new houses
are often more expensive than older
dwellings, in these areas the prices are
comparable because of strong demand
from developers wishing to chop up a
block and make some tidy profits from it.
“This demand generally makes the larger
blocks with older houses more valuable
than the smaller blocks with new houses.
We find that this is what the entry-level
investors are targeting, to take advantage
of the potential equity or profit achievable
in the future.
“Perth first homebuyers on the other
hand typically prefer buying a house in
an affordable big new estate, which is
usually much further from the city.
“Here first homebuyers can buy a big,
brand new house or house-and-land
package and live surrounded by similar
properties. If they do choose to live
closer to the Perth CBD, first homebuyers
still tend to prefer new houses,”
¿ NORTHERN EXPOSURE
In the north both Girrawheen and
Koondoola are just 15 kilometres from the
CBD and around 10 kilometres from the
beaches of Marmion and Hillarys.
In addition to the seaside proximity,
Sterzel says these two suburbs are
cheaper options, which gives them an
advantage over the other locations.
“Suburbs to the north, west and south
are more expensive – making Girrawheen
and Koondoola cheaper options with
potential to catch up,” she says.
“Both suburbs offer small pockets of
cheaper housing, many of which are
three-bedroom homes. The demographic
is multicultural on below-average
Sterzel explains Girrawheen’s reputation
have had in excess of 10 per cent growth
and auction clearance rates are through
the roof down south, so the only way it
can go is up and we’re usually six to 12
months behind them.”
For affordability and potential without
driving extraordinary distances, real
estate in the sunshine state’s capital looks
to be warming up in 2014.
With affordability sometimes comes socio-
economic issues that should be factored
into your investment decision.
When looking at preferred locations to
buy a three-bedroom house in Perth the
local experts on the ground have flagged
both positive and negative attributes of
The most affordable suburbs to buy
three-bedroom houses in Perth are
divided into three main areas, according
to data from APM.
Northeast of the CBD a group of four
suburbs including Stratton, Midland,
Lockridge and Bellevue start with a
median house price of $329,000, jumping
up to $375,000.
To the southeast Gosnells, Kenwick,
Langford and Maddington make up a
second cluster of four suburbs inside the
top 10 most affordable, with a median
house price starting at $332,750.
The last two suburbs of Girrawheen and
Koondoola sit almost directly north of the
Perth CBD and make up the third and
final cluster with a median house price of
$361,500 and $365,000 respectively.
¿ WHAT WILL YOUR MONEY GET YOU?
When exploring Perth’s cheapest median
price suburbs for three-bedroom houses
close to the CBD, Perth buyers’ agent
Liz Sterzel of Property Wizards says the
majority of properties are likely to be in
older, established areas.
“What you’ll find is older and tired areas
with a scarcity of new housing estates
and as a result, hungry for a taste of urban
renewal,” Sterzel says.
“For Perth first homebuyers or entry-
level investors choosing to skip past the
“You’ll probably get a 1980s brick, three-
bed, one-bath with likely a carport for sub-
He says Bald Hills has highset 1990s
brick homes in the low $300,000s, with
allotment sizes ranging from 450 square
metres, although most homes are on at
least 600 square metres. Rental demand is
good for the area too.
Otto sees 2014 as a steady market for
this suburb cluster.
“I think it’ll probably just keep pretty
much doing what it’s doing and will push
along quietly, but I don’t think it’s going
to be breaking any barriers.
“I think at these price points you’re
getting reasonably good value for money
and I can’t see any reason for it to
Ingram agrees for the price you’ll get
solid residential property.
“For $319,000 you’d get a nicely
renovated homestead – not top of the
range, it’ll be a modest home, but it’ll
Vacancy rates are also running at two
per cent, so landlords can look forward to
He says generally buyers are first
homebuyers and investors who are
looking to move beyond the more
expensive neighbouring suburbs of
Carseldine and Aspley.
“It seems a lot of people want to get to
Bald Hills because they want to stay in
the Brisbane City Council area. That’s one
reason, and the other reason is St Paul’s
College and access to the railway station.
“There’s a lot of property getting
bought up there and they’re building in
underneath and renting them for billeting
overseas students to stay there and go to
Ingram says a push by council to see
higher densities along roads near the
shopping centre is stimulating demand
from developers too.
“The council is just rezoning some of
the areas close to the Westfield Shopping
Centre to multi-storey. They’re going up
to eight levels around Learmonth Street,
Dixon, Mecklem, and also the other side of
the railway, near Bray Park Station, is also
being rezoned. All along Railway Avenue
there that runs right along the railway line
is all being rezoned to light commercial,
so there’s a few things happening.”
Ingram is looking forward to a stronger
2014 in the area.
“I’ve got a feeling we’re going to
probably increase around 10 to 15 per
cent based on what’s happened down
south this year. Sydney and Melbourne
æTenant demand is strong and the
choice of a good tenant becomes
essential also.Æ Gavin Hegney
THE STATES // SPECIAL REPORT
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