The fundamentals look to be aligning for the Perth property market with many undervalued markets continue to present strong opportunities as precise continue to rise.
Perth has seen steady growth over the last 12 months on the back of strong affordability, low vacancy rates and solid rental yields.
The Perth property market looks to be entering a growth cycle, as the ‘CoreLogic Home Value Index’ indicates a rise of 11.38% for houses [1].
There are strong coastal markets only a short travelling distance in the north of Perth CBD itself that have key fundamentals in place for potential capital growth in the medium to long term.
These markets not only represent lifestyle qualities for future owner-occupiers being beautiful low residential beachside suburbs with all the key amenities and infrastructure, but certain pockets also offer investors low entry-level prices compared to other cities such as Sydney and Melbourne.
The team at Meridian Australia have helped many of our investors in the last quarter of 2021 in securing investment properties within key suburbs that we believe represent potential in the medium-to-long term.
Key Markets.
One key northern Perth market of choice is a low residential housing market and a beachside suburb located in the north of Perth.
The suburb is geographically well-positioned within 40 minutes to Perth CBD, within 20 minutes from the major secondary CBD Joondalup and 3-6 minutes from many major beaches.
The suburb has all the key amenities required by families and this is reflective of the market being dominated by owner-occupiers.
Key amenities include:
Cafes and food precincts
8 accredited day-care centres (5 mins)
Parks, sporting fields, walking and bike trails
Families of the suburb have many choices when it comes to education, with multiple public and private schooling options within proximity, including:
Edith Cowan University Joondalup Campus is also located less than 20 minutes away
North Metropolitan TAFE Clarkson is less than 15 minutes away.
Market Stats.
Vacancy rates: Currently 1.66%
Strong rental yields at 4.7% for houses
24.9% of the market demographic is made up of professionals and managers, indicative of an affluent white-collar workers
71.2% of the homes in the suburb are owner-occupied, illustrating a lower risk market
44kms (35-40 mins to Perth CBD)
Additional Infrastructure.
$5.7 Billion Metronet Program
The $5.7B spends will span across 15 Metronet job-creating projects, creating thousands of local jobs, and setting up WA’s transport network for the future.
$1.7 billion to be spent in 2020-21, creating thousands of local jobs.
More than $1.5 billion was secured by the Commonwealth Government.
The METRONET program is the largest investment in public transport Perth has ever seen.
Seven of the 15 METRONET projects were underway in 2020, with more projects under development [2].
$1.5 Billion Perth City Deal
Estimated to create almost 10,000 jobs while encouraging more people into the city creating a flow of economic benefits [3].
$695 mil Edith Cowan Inner City University
The first inner-city university campus which will host the law & business schools for Edith Cowan University
Also as part of this investment by the government, Edith Cowan University is bringing the WA Academy of Performing Arts into the CBD and is expected to create $1.5 billion of economic stimulus and more than 3000 jobs during construction, as well as over 380 ongoing jobs.
The new CBD campus is anticipated to attract 9,200 students and staff in 2025, growing to over 11,000 students in 2034 and further stimulating the economy.
The estimated completion date for the major infrastructure project is 2024 and the campus aims to open in 2025 [3].
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Next Steps
Looking to get the property investment conversation started?
Or, just looking to stay in the loop?
Jarryd Gauci – Property Investment Consultant
P: (02) 9939 3249
Disclaimer: When considering purchasing a property, it's always prudent to seek the advice of an appropriately qualified professional to determine which strategy is most appropriate for your circumstance.
References:
[2] ABS, Charter Keck Cramer
[3] ABS
[4] Western Australia State Budget 2021-2022 - Government of Western Australia
[5] Western Australia State Budget 2021-2022 - Government of Western Australia
[6] REIWA
[7] SQM Research
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