Why our low property interest rates benefit sellers

 

If you’re in the market to buy a house in Australia, chances are you already understand how interest rates affect how much you’ll end up paying. However, you might not realise just how far-reaching the effects of an interest rate rise or fall can be.

Australian property values fluctuate with interest rates

When interest rates are low, it generally encourages prospective home buyers to enter the market. Since obtaining home finance is more affordable, those who may have been on the fence regarding the purchase of Australian property are more likely to take out a home loan and buy real estate.

In turn, this increase in demand for property leads to rising property values as inventory is scooped up and homes become more difficult to obtain.

Of course, the inverse is also true. When interest rates are high, consumers may be more unwilling to take out the mortgages they need in order to enter the property market. With fewer people looking to buy, the value of real estate stagnates or declines.

Interest rates are a major factor in property cycles, and for that reason it’s important for potential home buyers to keep an eye on where interest rates are and where they may be heading.

Predicting the future

While trying to predict which way interest rates will move is far from a perfect science, there are strategies consumers can use.

In general, stronger economies tend to have higher interest rates, with lower rates used as a way to increase investment and eliminate a financial slowdown. In this way, staying apprised of general economic news and trends can help you determine whether interest rates are likely to rise or fall.

However, it’s important to remember that interest rates are not the only factor that helps determine the cost and difficulty of purchasing real estate.

Everything from location to population trends can impact home prices and availability.

While interest rates an important factor, it’s just as essential to work with a qualified buyer agent to streamline the process and ensure you make decisions that suit your needs.

Source:PropertyBuyer

Peppermint Grove; Perth’s most expensive suburb

PEPPERMINT GROVE is the most expensive suburb in Perth to buy property.

It topped Reiwa’s list of the 10 most expensive suburbs for the 12 months to December 2019 with a median house price of $2.5 million.

The exclusive suburb, the smallest local government area in Australia, is home to some of WA wealthiest and oldest families and has been called “Australia’s Monaco” due to its size and wealth concentration.

There were just 11 sales in the area in the reporting period and Ray White Cottesloe-Mosman Park sales executive Jen Lowe said properties in the small suburb were tightly held.

“It’s very popular, a beautiful location between the river and the sea, with spectacular homes, large blocks and tree-lined streets,” she said.

Offering stately homes on large blocks, new homes and larger properties that could be subdivided and still offer plenty of land for building, Peppermint Grove attracted a range of well-heeled buyers.

“Anecdotally, interest appears to be increasing,” Ms Lowe said.

“Sophisticated buyers are active, looking for properties currently at keen pricing.

“With the large lots it can be an excellent area for people with growing families.”

Ms Lowe achieved the highest recorded sale price in the area in 2019, for a historic home on two lots totalling 2731sq m on the corner of Leake Street and The Esplanade.

“People liked the romance of the home and its heritage,” she said.

“Everyone loved the position, it is one of the best blocks in the area, a large landholding with a completely unhindered northern boundary.”

It was bought by Paul Blackburne and his wife Charmaine for $8.8 million.

The proposed home designed by DMG.

“We have worked closely with the council in the design of our new home to preserve Weerianna for Peppermint Grove and future generations,” Mr Blackburne said.

“The contrast between the old and new residences and an increased setback between the two properties will maintain local heritage character and support diversity of architecture within the community.

“We are working with someone to ensure this amazing home is restored to its former glory.

“We’re all looking forward to enjoying views of the beautiful Swan River, which is one the best places in the world, and being able to spend time on the foreshore with our young family and friends.”

While the home sold for a significant sum, it is not the highest price achieved by a home in the area in the last 20 years.

That honour goes to 56 the Esplanade, which was bought by Nigel Sattlerley for $17.5 million in 2013.

Close behind was the superblock at 2 Bay View Terrace, which sold for $17 million in 2018.

Despite its premium prices and popularity, Peppermint Grove’s median price fell 31.5 per cent over the year, possibly a reflection on the small number of sales rather than a general price decline.

Of the Top 10 suburbs only Swanbourne, Nedlands and South Perth showed price growth. Floreat remained unchanged.

Dalkeith was close behind Peppermint Grove for the title of the most expensive suburb with a median house price of $2.28 million, while Swanbourne was the top performer for growth, rising 20.5 per cent.

Applecross and South Perth were the only non-western suburbs in the Top 10.

Overall in the year to December, the Greater Perth median house price was $480,000, down 4 per cent year on year.

 

Source:CommunityNews

Property market update: Perth, February 2020

 

After a long period of stagnation, the Perth property market has started to show green shoots of recovery. Will the Western Australian capital be able to sustain growth long enough to benefit investors in the long term?

Perth, along with Brisbane, garnered the highest level of interest from investors based on the survey conducted by property investment consultancy Momentum Wealth, which collected responses from over 400 investors across Australia.

Overall, 68 per cent believe that it is still a good time to dive into the housing market right now – a significant increase from last year’s 53 per cent and the year prior’s 44 per cent.

Investor interest remained highest in Perth and Brisbane, with 37 per cent and 26 per cent of respondents respectively choosing the capital cities as the best locations to invest in the next 12 months.

Team leader of Momentum Wealth’s buyer’s agents Emma Everett said that the relative affordability and growth opportunities in both Brisbane and Perth are likely to be the primary drivers of continued interest in their property markets.

“While Brisbane’s property market has been recording steady growth for some time, continued improvements in rental conditions and a significant tightening of stock in Perth’s housing sector are now driving the consensus that the property market is moving into recovery phase, with savvy buyers realising the counter-cyclical opportunities at hand,” Ms Everett highlighted.

“Investors are also recognising the value for money these markets offer, especially in comparison to places like Sydney where prices remain significantly overvalued and affordability constraints are pushing buyers out of the capital city market in favour of regional or state alternatives.”

According to Ms Everett, a number of factors are contributing to a strong long-term outlook for Perth’s residential housing sector, including growth in population and the mining sector.

“While we’re already seeing early improvements across Perth’s rental and capital markets, rising activity in the mining sector, increased infrastructure spending and early signs of accelerated population growth are providing strong indicators for the market’s future performance,” she said.

Moving further into 2020, Perth’s median house price of over $500,000 should be able to provide investors and owners with value gains of 5 per cent in 2020, based on Domain’s Property Price Forecasts for February 2020.

In 2021, the Western Australian capital may experience a further 3 to 5 per cent improvement to prices.

Still, Right Property Group’s Victor Kumar reminded investors to be cautious and do due diligence before investing in the Perth property market.

“We have been buying strategically in Perth for a little while, but it is not a market for the uneducated, given prices remain more than 20 per cent below their peak, with different suburbs all at different phases of recovery, with some still falling,” he said.

Property values

CoreLogic’s February 2020 Home Value Index has found a rebound in the pace of capital gains across the Australian housing market throughout the month, seeing the national index rise by 1.1 per cent.

The strongest capital gains were recorded in Sydney, at 1.7 per cent to $872,934 and Melbourne at 1.2 per cent to a median house value of $689,088, followed by Brisbane ($503,265), Canberra ($631,862), Hobart ($488,968) and Adelaide ($439,453).

For Perth, a 0.3 per cent increase in dwelling values reported for the month is being flagged by CoreLogic as “evidence that the long-running downturn is over”. It’s the Western Australian capital’s fourth consecutive month without a value drop, bringing values to a median of $442,691.

However, despite values now trending higher, “the recovery period is likely to be a long one, with Perth housing values remaining 21 per cent below their peak”, according to CoreLogic’s head of research Tim Lawless.

Darwin was the only capital not to record a rise in values over February, with values down by 1.4 per cent, and 1.8 per cent for the quarter, bringing the median house value to $386,345.

For those looking for more affordable entry points to the property market, Mr Lawless suggested narrowing down the property search by examining lower quartile values.

The lower quartile – or the most affordable 25 per cent of properties in a region – would provide a better view of the market entry point, according to him.

Taking this into account, Mr Lawless said some areas that might seem out of budget based on the median value “may actually offer up some opportunities if buyers are willing to target properties at the lower end of the value range”.

While Perth is already one of the most affordable capital cities in terms of median housing values, its lower quartile values sit at an even lower $358,790.

According to analysis, every subregion of Perth shows a lower quartile value under $400,000, except for the inner subregion, where the lower quartile value is up at $906,900 – more than double any other subregion.

Supply and demand

The week ending 1 March 2020 saw Australian capital city auction volumes reaching their highest levels since late November 2019, according to CoreLogic’s latest auction market preview.

With over 3,000 homes taken to auction, a success rate of 73.9 per cent was achieved.

“The last time the final weighted average clearance rate maintained [such] strength across such a high volume of auctions was back in early 2017,” it revealed.

Breaking down the results by capital cities, Melbourne recorded its busiest week since March 2018, with 1,612 auctions reported. It returned a final clearance rate of 74.8 per cent.

Sydney was crowned the title of “best-performing capital city auction market” last week, returning a 76.6 per cent final auction clearance rate from 1,087 auctions. It was a stronger clearance rate than the week prior, where 963 auctions returned a clearance rate of 74.5 per cent.

It was a mixed bag of results across the smaller cities, with the ACT unsurprisingly offering the highest clearance rate.

Canberra saw a clearance rate of 69.5 per cent, followed by Brisbane at 60.5 per cent and Adelaide at 56.4 per cent.

Finally, 29.4 per cent of auctions in Perth found buyers.

According to the Real Estate Institute of Western Australia (REIWA), the lower number of sales recorded can be attributed to a 20 per cent decrease in house sales, 29 per cent less unit sales and a 10 per cent decline in vacant land sales. The decline is despite a slight increase in listings.

Breaking down the statistics by property type, a 2 per cent increase in listing stock was observed for houses, while listings for units also increased by 1 per cent. A simultaneous 1 per cent decrease in vacant land listings was recorded.

Despite the near-term gain, the REIWA highlighted that the listings volume is down by 26 per cent on the same period last year.

Meanwhile, rental listing volumes are also down on last year’s results, a 16 per cent decrease on listings from this time last year.

There are currently 5,573 properties up for rent in Perth and just 780 properties leased across the capital city.

Growth outlook

Money has started to move from the east coast to the west as the western property market witnesses recovery, according to a previous Domain study.

According to the study, Perth is likely to see its fastest growth since the mining boom in 2014, which is welcome news for investors who have bought and held during the boom.

The median house price should be $564,000, which, while higher than the current median value, is still 8 per cent below its previous peak.

To take advantage of the potential for future upswings, Property Club president Kevin Young encouraged investors to buy homes in areas where new schools are in the pipeline.

According to Mr Young, “The connection between good schools and rising property values has been a proven fact over many years.”

Research from the University of Melbourne found that a top public school can add 3.7 per cent to the value of a property in the school’s local catchment area.

Additionally, Property Club research also revealed that tenants with children are “keen to live in catchment areas with good public schools”, Mr Young said.

Homes in these areas could command an additional 10 per cent weekly rent compared with surrounding suburbs outside the catchment areas, so property buyers are encouraged to focus on identifying areas where major new school investments are set to occur.

One such example is the opening of Perth suburb Subiaco’s $70 million Bob Hawke College last month.

The facility has a 150-seat lecture theatre, modern library and multipurpose indoor sports hall, with Mr Young noting that the school will cater for 2,000 students by 2025.

“The catchment area for the college contains areas that are still relatively affordable and will benefit hugely when this college becomes fully operational,” Mr Young highlighted.

“With the start of a new school year, it is timely that property buyers throughout Australia start to target areas where the government is going to invest significant amounts of money in new educational facilities, which will boost the future demand for housing in these areas over the coming years.”

Hotspots

Results from InSynergy Property Wealth Advisory identified Brisbane, Adelaide, Canberra, Perth and the Sunshine Coast are locations that could see strong price growth this year.

Each location has been picked because they had strong market fundamentals that would lead to property price performance in the years ahead, InSynergy chief property investment adviser Richard Sheppard said.

Over the next six to 10 years, the most robust markets could rise between 80 and 120 per cent, while also returning higher yields at the start of each cycle, he said.

On the other hand, the worst-performing markets could see prices slide by up to 20 per cent over the same period.

Mr Sheppard believes prices will start to firm in these locations sooner rather than later.

Among the expected drivers of growth is the development of over 60 hectares of land for a new coastal community in the outer suburbs of Perth.

A statement from the government of Western Australia has said that subject to development approvals, approximately 900 residential lots ranging from 180 to 600 square meters are to be developed in the coastal suburb of Port Kennedy from Crown land over the next decade.

Approximately 55 kilometres south of Perth, the suburb is located on the coast within the City of Rockingham.

The project is set to deliver 400 local jobs and $15 million in public works through development of the lots and associated community infrastructure, as well as see Port Kennedy’s retaining and improvement of an existing golf course and development of a new main street and town centre comprising of offices and shops.

According to planning minister Rita Saffioti, “We must plan for future employment and infill development opportunities that are close to public transport and are where people want to live, in growing suburbs like Port Kennedy.”

The agreement “will allow for the development of new community facilities, provide greater choice of housing type and bring a welcome boost to the local economy”, she said.

Lands Minister Ben Wyatt said the long-awaited project “will not only revive the coastal landscape of Port Kennedy, but will create much-needed community infrastructure and local jobs for the area”.

The first stage of development will see two road access points developed for emergency fire response and the creation of a new north-south coastal road, while Kennedy Bay’s first lots are expected to be released in early 2022.

Public commentary on a local structure plan will be invited in the coming weeks before final approval is sought from the Western Australian Planning Commission.

A number of infrastructure projects will also be established in Perth over the next five years as part of the local government’s METRONET project, which will see the creation of up to 18 new stations across the Perth metropolitan region.

The first stage of the project includes the development of three new stations under the $1.86 billion Forrestfield-Airport Link.

Previously overlooked suburbs, like Forrestfield, are set to benefit from these projects.

“For a suburb like Forrestfield which has always been on the fringe of the Perth greater region, having a direct transport route between Perth’s airport and the CBD could be a major drawcard for city and FIFO workers, in turn promoting a new wave of buyer demand,” Momentum Wealth’s research adviser Shaun Strickland said.

“Investors who enter these suburbs at the right time have the opportunity to leverage the relative affordability of these areas before buyer competition starts to place upwards pressure on property values.”

Infrastructure upgrades such as new transport links can provide an important catalyst for capital growth due to the increased accessibility and amenity they bring to a suburb, both of which can help drive higher levels of demand from buyers and renters, according to Mr Strickland.

Source: SmartPropertyInvestment

WA government freezes household fees in the wake of COVID-19

THE state government has announced a $607 million economic stimulus package, including freezing household fees and charges in the wake of COVID-19.

It declared a state of emergency on Sunday, warning those who arrive from overseas and breach the 14-day self-isolation ban face the nation’s toughest penalties with fines up to $50,000.

Premier Mark McGowan urged people to report anyone defying the ban.

The $607 million package includes a freeze on household fees and charges until at least July 1, 2021, a doubling of the Energy Assistance Payment to $600 and a number of measures to support small business.

“If people are aware of others who are flouting these rules, in the interest of community safety, I’d ask them to report those people to the police, to the health department,” Mr McGowan told ABC radio.

“Public health officers, with the assistance of police, will be able to enforce it.”

He said authorities had a list of names from airlines “so there is the opportunity to follow this up”.

All jury trials were postponed until Tuesday.

The Supreme Court of WA remains open to the public, but it urged anyone other than legal practitioners, involved parties, witnesses and media not to attend.

WA schools implement COVID-19 measures

WEST Australian schools will introduce new precautionary measures, including cancelling assemblies and staggering recess and lunch breaks, to slow the spread of the coronavirus.

School principals were advised to put distancing measures in place, and ensure students or staff returning from overseas abide by the 14-day self-isolation rules from Monday.

The move came a day after the WA government declared a public health emergency and a state of emergency to try and slow the spread of the virus. 

School events with more than 500 people including sports carnivals, concerts, exhibitions, and fairs will be cancelled or postponed until further notice.

Principals have also been advised not to hold full school assemblies and to stagger recess and lunch breaks at schools with more than 500 students.

Education Department Director-General Lisa Rodgers said schools will remain open unless otherwise authorised by the chief health officer.

“It’s important we all work towards managing the impact and reducing the exposure of COVID-19 which is why these considered actions are being taken,” Ms Rodgers said.

“These decisions have been made with the best interests of staff and students in mind.

“This is the situation as it stands based on current advice and we will continue to keep schools informed.”

 

Source: CommunityNews

Perth property market has highest growth potential

In a vote of confidence, property investors are backing Perth as the property market with the strongest outlook, according to an annual survey from property investment consultancy Momentum Wealth.

The survey collected 401 responses from property investors across Australia, with 37 per cent of respondents outlining the capital city market as the best place to invest in the next 12 months, and an overwhelming 61 per cent ranking Perth as the market with the highest growth potential in the next three years.

Momentum Wealth Buyer’s Agent Team Leader Emma Everett said a combination of affordability, improving rental conditions and positive future indicators were likely behind the uplift in confidence in Western Australia’s property market.

“Continued improvements in rental conditions and a significant tightening of stock in Perth’s housing sector are now driving the consensus that the property market is moving into recovery phase, with savvy investors realising the counter-cyclical opportunities at hand,” she said.

“At the same time, longer-term indicators such as rising activity in the mining sector, increased infrastructure spending and early signs of accelerated population growth in Perth are providing healthy indicators for the market’s future performance, with the latter expected to drive higher levels of demand in the medium term.”

While Perth and Brisbane emerged as the leading choice for overall respondents, the survey showed confidence had risen as a whole across Australia’s property markets.

Ms Everett said the uplift in sentiment was likely due to shifts in Australia’s different property cycles, but advised investors to remain diligent in their investment decisions.

While sentiment was optimistic across Australia’s property markets, the survey showed finance remained a barrier to entry for a large proportion of buyers.

This was especially the case in Perth, where 39 per cent of investors highlighted lack of equity or borrowing issues as factors preventing them from entering the market in the shorter-term.

Momentum Wealth’s Finance Team Leader Caylum Merrick said investors unable to progress with their portfolio should focus on debt consolidation strategies.

“While recent interest rate cuts and improving rental conditions are helping to alleviate some of these financial pressures, investors who are lacking the equity to progress should focus on debt consolidation strategies, as well as reviewing their existing lending solutions for potential opportunities to reduce repayments,” he said.

Mr Merrick said this combined with complexities in Australia’s lending environment could also be behind the growing popularity of mortgage brokers.

At 68 per cent, the vast majority of investors surveyed said they would engage a mortgage broker to secure their next investment loan over other lending options, with only 19 per cent indicating they would approach their bank directly.

Mair Property Funds Managing Director David Ellwood said investors were recognising the benefits of commercial property over other cash flow-focused investments.

“With the low interest rate environment pushing returns on interest bearing investments such as government bonds and term deposits below two per cent, yield-focused investors are looking towards alternative income-generating options, and commercial property is presenting an attractive alternative,” he said.

“Combined with the high entry cost of investing in commercial properties directly, this could explain growing interest in commercial property fund.”

 

Source:https://thewest.com.au/lifestyle/real-estate/perth-property-market-has-highest-growth-potential-c-715365

South City Beach ‘jewel’ named top WA Home

South Beach

A THREE-level home, referred to as the jewel of South City Beach, has been named WA’s Top Home at the 2020 Master Builders-Bankwest Housing Excellence Awards.

Designed by Banham Architects and built by Tony Tomizzi Builders, the residence has a 10-car undercroft garage, four bedrooms each with an ensuite and multiple living areas where ceiling-height window frames and sliding doors maximise the sweeping park and ocean views.

The top home title was backed up by awards for excellence in plastering, roofing, tiling, external finishes, paving, ceilings, carpentry, painting and the silver trowel prize and the project also won Best Contract Home in the $2.5-3.5 million category.

Chief judge Robert Shaw said it was a very unusual and interesting home and it was great to see how design came together beautifully with high-class workmanship across all the trades.

High ceilings and windows maxmise the views.

“People sometimes make the throw-away remark that it’s easy to build a winning home when there’s a lot of money to spend on it but that’s not the case,” he said.

“A builder has different materials and architectural designs to deal with and the challenge is to unite all the elements with craftsmanship and precision to deliver a home of award-winning standard; it’s tough to achieve a consistently high level but some do it very well.

“Congratulations to Tony Tomizzi and all the staff, subcontractors and suppliers; a lot of trades have done exceptional work to create this year’s standout home.”

The home has living areas over two floors.

Master Builders WA has been presenting awards for housing excellence for 40 years and a range of high-class, unique and innovative homes were been honoured in this anniversary year.

Executive director John Gelavis said hundreds of properties with a combined value of more than $250 million were entered in 2020 awards.

“A Master Builders award is a sign of outstanding skill which sets a builder apart in the highly competitive market,” he said.

“The projects range from opulent mansions to modest homes for first-time buyers so the real winners are WA homeowners because they can choose a quality builder at any level.”

The Best Country Home award went to McAullay Builders for a custom-built house on a bush block near Geraldton.

This Geraldton home by McAullay Builders was named Top Country Home.

Regional judge Charlie Baggetta said a high Bushfire Attack Level rating added complexity to the construction.

The timber and granite entry.

“A striking array of external finishes have been used on the home including rammed earth, local granite, corrugated iron and recycled timber,” he said.

“There’s a danger with such a wide range that it could have looked like a muddle but the materials have been brought together with skill and care to make a pleasing first impression.

“Moving inside, the rammed earth and recycled timber reappear, creating a link with the exterior.”

Concrete flooring and recycled brick feature in the living area.

Other features in the four-bedroom home are polished concrete floors, recycled brick and Baltic pine shelves in kitchen, and a gazebo built from recycled bridge timbers from Mandurah that pays homage to the owners’ ties to the area.

“The workmanship is excellent throughout and the home has a high energy efficiency rating, with elevated ceilings and lots of glass facing north to capture the winter sun,” Mr Baggetta said.

The Best Alterations & Additions award was presented to TM Construction WA for the extensive renovation of a Lesmurdie home.

Best Alterations & Additions went to a Lesmurdie renovation by TM Construction WA.

This challenging project involved major earth works, with the garage being cut into the side of the hill, a corridor under the driveway, lift shaft and other modifications to assist the client who was in a wheelchair following an accident.

Best Alterations & Additions.

Another significant presentation was the Local Government Best Practice award, won by the City of Armadale.

“Local governments play an important role in the building industry and the unique Master Builders best practice award is voted by builders, who regularly work with councils,” Mr Gelavis said.

“The City of Armadale delivers timely responses to building applications, provides reliable advice and shows high standards of communication and cooperation.”

The awards were held on February 22 at Crown Perth.

The WA winners will compete against the best of other states and territories at the Master Builders national awards in Perth on November 28.

Source: https://www.communitynews.com.au/western-suburbs-weekly/real-estate/south-city-beach-jewel-named-master-builders-2020-top-wa-home/

Perth suburbs to watch for in 2020

Watch

As we settle in to a new decade, savvy first homebuyers are taking advantage of low interest rates, the extension of Keystart’s temporary increase in income limits, as well as upgrades to public transport infrastructure in Perth’s growth areas.

Perth’s median house price is currently sitting at $482,750, and Stockland General Manager Residential Western Australia Col Dutton said with a bit of research and planning, people looking to enter the market in 2020 could set themselves up for the decade.

“There are more than 13,000 homes and units currently listed for sale throughout the Perth metropolitan area, so it can be daunting trying to uncover the best buys,” Mr Dutton said.

Do your research

“Doing your research on the locations which will benefit in this coming decade, from public transport and infrastructure development, to new schools and new services, can pay dividends.

“It also pays to look into suburbs surrounded by areas of growth and suburbs with rising median house prices, as this is likely to have a halo effect in the medium-to-long term.”

Mr Dutton was supported in his comments by ABN Group Manager Director Dale Alcock, who said a decision to buy now would mean people were locking in the most affordable home, land and finance in many years.

“With interest rates as low as they are, it provides a perfect opportunity to really build serious equity in your new home, if you can just slightly increase your repayments,” he said.

“As soon as any slight recovery in the market occurs, there will be substantial increases in land prices and home prices, because there will be pressure on supply of materials and labour.

“So ideally if you can act now you will be getting in at absolutely the best time. You’ll look back on your decision to buy in 2020 as the best move ever.”

Mr Dutton said the December announcement of an extension in Keystart’s temporary income limit offered an additional incentive for first homebuyers. The extension allowed the July income limit of $15,000 for singles and $20,000 for families to be utilised until June 2020.

“Smart first homebuyers, who are looking to plan ahead, should check out property hotspots via resources such as REIWA,” he said.

“If you take a look at Aveley or Treeby, for example, both of these suburbs have median house prices under the Perth average but are surrounded by areas with houses selling for between $500,000 and $750,000.

“Along the coast you have Eglinton, which has a current median house price of $390,000, and is just a short drive from suburbs such as Jindalee and Mindarie, which have homes selling upwards of $1 million.

“The extension of the Metronet railway to Yanchep and the widening of Marmion Avenue are the sorts of infrastructure developments which will have ongoing, medium-to-long term benefits for those who buy in 2020.”

 

First homebuyers

Mr Dutton said many first homebuyers were expected to take advantage of the six-month extension to the Keystart income limits.

“In the four months to October more than 300 applications were made to Keystart which fell within the new income limits,” he said.

“If you are a first homebuyer now is definitely the time to find out more about Keystart.”

Source: https://thewest.com.au/lifestyle/real-estate/perth-suburbs-to-watch-for-in-2020-c-678622

 

Reiwa reveals Perth’s top suburbs for investors in 2020

Rent

PERTH’S southern suburbs are the ones for investors to watch in 2020, according to Reiwa.

Medina, Armadale and Parmelia are the standout performers in its top 10 list of areas where properties leased faster than the metro average of 28 days and had high rental returns last year.

Reiwa president Damian Collins said with the Perth property market starting to show signs of improvement, there were some great investment opportunities.

Top 10 Suburbs

Top 10

 

“With interest rates at record lows, many of these properties are likely to be positively geared,” he said.

“There are a lot of contributing factors that make a good investment property, however suburbs that have a high rental yield such as Medina, which had a 7.5 per cent rental yield and lower than average days to lease, are ones to consider.

“It took approximately 17 days for a property to lease in Medina, which is well below the Perth average, and demonstrates the suburb is in high demand by tenants.”

Armadale had a higher yield at 6.2 per cent, but it took an average 27 days for properties to lease – the same time as Port Kennedy and Clarkson.

Clarkson, with a yield of 5 per cent, and Banksia Grove, with a yield of 5.6 per cent and tenants snapping up a property in an average 25 days, are the only northern suburbs to feature.

The suburbs’ lifestyle, popularity and future growth were not considered.

Perth’s vacancy rate is 2.3 per cent.

 

Source: https://www.communitynews.com.au/weekend-courier/real-estate/reiwa-reveals-perths-top-suburbs-for-investors/

New bridge connecting WA hospital to parks, helping sick children

hospital

 

 

Main Roads Western Australia will build a new bridge connecting Perth Children’s Hospital to Kings Park and Botanic Garden, after a $6.3 million funding commitment.

The project will see the construction of a pedestrian bridge over Winthrop Avenue to connect the outdoor area between PCH and the multi-story carpark on the Queen Elizabeth II (QEII) Medical Centre campus to Kings Park bushland.

The New Bridge

The new bridge will allow sick children, their families and hospital staff to cross busy Winthrop Avenue with ease, connecting kids with the beauty and nature on offer at Kings Park.

Main Roads will manage the design, construction and maintenance of the bridge, working collaboratively with Perth Children’s Hospital Foundation, Child and Adolescent Health Service, Botanic Gardens and Parks Authority, QEII Medical Centre Trust and the City of Perth.

WA Health Minister, Roger Cook, said,  “We know there is strong evidence in the power of nature in healing and this bridge will allow this to be harnessed. The opportunity for some of our sick children and their families to access this urban sanctuary during a challenging time is a wonderful bonus.”

The bridge project has been made possible by a $6.3 million funding commitment from the Perth Children’s Hospital Foundation and will be built and maintained by Main Roads Western Australia.

The bridge will provide opportunities for both inpatients and outpatients and their families to access Kings Park while they are at PCH receiving treatment. It will also provide a huge opportunity for a range of therapies, including allied health, to be delivered in an environment which harnesses the health and wellbeing benefits of nature.

The potential benefits of the bridge will also extend to staff across the QEII campus who can easily access the park for fitness, lifestyle and wellbeing activities as well as for access to existing cycle and pedestrian paths for commuting.

Construction tenders are expected to be advertised in the second half of this year with construction completed by the end of 2021.

Grand vision for Two Rocks revitalisation

A revitalisation of Two Rocks is on the cards, with Transport Minister Rita Saffioti recently announcing a draft master plan for the outer northern suburb.

A significant milestone in implementing a long-term blueprint to capitalise on the potential of the area, the model will establish Two Rocks Marina as an entertainment and recreational precinct. The plans include a pedestrian bridge which will extend over the water to form the limits of a protected swimming beach.

“Perth’s northern suburbs are growing rapidly and the Two Rocks Marina is well-positioned to accommodate future demand and provide the local community with safe maritime facilities, access to the ocean and to generate economic opportunities and jobs in construction, retail and tourism,” Ms Saffioti said.

An eight-lane boat-launching facility, parks and additional public spaces are also features of the long-term vision, which is the work of the Two Rocks Marina Redevelopment Reference Group.

The marina is currently undergoing $6 million worth of upgrades, including breakwater improvements and the demolition of ageing maritime structures such as the original fuel jetty.

Atlantis Beach Estate Manager Blaine Hall-Jones said the project would ignite buyer interest in the area.

He said revitalised marinas had historically played a key role in transforming local coastal property markets in Perth.

“The Perth property market is focused on lifestyle and marinas are an icon for the wonderful coastal lifestyle the city has to offer,” Mr Hall-Jones said.

“You only have to look at how the marinas at Hillarys, Coogee and Mindarie have helped to transform these areas into much sought-after lifestyle locations for property buyers.”

Travelling time between Two Rocks and the Perth CBD will be substantially reduced over the next three years. This follows the investment of over $700 million in new transport infrastructure, which includes the Perth to Yanchep railway and extension of the Mitchell Freeway to Romeo Road.

Mr Hall-Jones said the release of the draft master plan had also sparked interest amongst property buyers and investors in the eastern states.

“Enquiry levels from buyers in the eastern states interested in the Atlantis Beach Estate have more than doubled in the past month or so,” he said.

“These astute investors understand new infrastructure such as marinas can play a key role in driving the development of outer coastal townships and they now expect this to occur in Two Rocks.”

A suburb rooted in history

Two Rocks has rich historical and social significance.

In the 1970s, businessman Alan Bond sought to transform the suburb’s residential market with his ambitious ‘Sun City’ plan. After buying 19,600 acres of pastoral property, the vision was to create a Gold Coast-like satellite city and tourist resort of 200,000 people. Schools, a shopping centre and a tavern were established, creating much-needed amenities to stimulate interest.

Opened in 1974, the Two Rocks Marina development was meant to attract buyers. Soon after, in 1981, Atlantis Marine Park was opened. Nestled in the heart of Two Rocks, Atlantis was dotted with charming displays, statues, waterslides, pools, paddling boats, a golf course, aquarium, theatre, trampoline park, playgrounds and more. By 1982 more one million visitors had walked through the gates, but financial troubles and declining interest saw the park close in August 1990.

Frozen in time, the park’s statues and diving platforms are still scattered throughout the area. The most striking aspect of Atlantis was the statue of King Neptune, which is now heritage-listed and remains in its original spot overlooking the marine park.

Source: https://thewest.com.au/lifestyle/real-estate/grand-vision-for-two-rocks-revitalisation-c-419400