Perth suburbs to watch for in 2020
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.”
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.”