PROPERTY HOTSPOTS PROPERTY WATCH® REPORT PERTH GOLD COAST Surfers Paradise Fourth Quarter 2013 2ND HALF 2015
PERTH HOTSPOTS July – December 2015
HOTSPOTS OVERVIEW This hotspot report analyses the suburbs of Perth and its metro area, to highlight suburbs with above average growth over the past 12 months to June 2015; thus informing the market for the second half of 2015. To determine Perth’s hotspots three key indicators are utilised. Firstly annual median price growth between FY2014 and FY2015. Secondly aggregate estimated value of residential, commercial, and infrastructure project developments between FY2014 and FY2015, and those to commence construction July 2015 onwards. This indicates upcoming property supply, interconnectivity to the CBD and other economic hubs, and level of economic activity expected in the area. Lastly average day on the market and average vendor discount are considered, determining the level of competitiveness between buyers in the market. In Perth and its surrounding metro area, the trend has been showing a softening in median prices for both houses (-2.9%) and units (-2.2%). The median price of Perth CBD and its immediate areas range between Overview $600,000 - $900,000, with most expensive suburbs to be found within the inner ring.
FY2015 TOP PERFORMERS
KEY MARKET INDICATORS
Suburb
LGA
Tyoe
Median Price FY2014
Median Price FY2015**
Annual Growth
Project FY2014FY2015*
Joondanna
Stirling
House
$675,000
$780,000
16%
$9.3M
Bicton
Melville
House
$910,000
$1,050,000
15%
$1M
Bellevue
Swan
House
$334,500
$380,000
14%
$650K
Manning
South Perth
House
$750,000
$850,000
13%
$600K
Trigg
Stirling
House
$890,000
$987,500
11%
$2.5M
West Leederville
Cambridge
Unit
$390,000
$565,000
45%
$11M
Burswood
Victoria Park
Unit
$630,000
$822,500
31%
$438M
Crawley
Subiaco/ Perth
Unit
$570,000
$650,000
14%
$53M
Claremont
Claremont
Unit
$595,500
$670,000
13%
$90M
South Perth
South Perth
Unit
$602,500
$650,000
8%
$25M
Change from Last
Year
Quarter
House sales House median House rents Unit sales Unit median Unit rents
*Disclaimer: Project spending is based on aggregate of estimated land and construction value all projects completed between FY2014 and FY2015, it does not represent commercial and/or sale value **NoteL FY2015 Median Price represents sales data captured up to and inclusive of 30 th June 2015 Source: Cordell Database, Real Estate Institute of Western Australia, APM Pricefinder, Corelogic RP Data. Western Australia Department of Planning, Perth City Council
“Despite a slowdown in the mining sector, private and government development investment continues to grow in Perth. 2015-16 will see key areas throughout Perth benefit from infrastructure and commercial expansion” Dr Diaswati Mardiasmo PRDnationwide National Research Manager Heading
PRDnationwide does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the Information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one way or the other in relation to the accuracy of such information, figures and projections. PRDnationwide will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material. Prepared by PRDnationwide Research © All medians and volumes are calculated by PRDnationwide Research. Use with written permission only. All other responsibilities disclaimed. © 2014
PROPERTY CLOCK – PERTH 2015 Perth Metropolitan Regional
Peak
Upswing
Downswing
Bottom
HOUSE HOTSPOTS 2015
Overview
4+ Bed
4+ Bed
4+ Bed
3 Bed
3 Bed
3 Bed
2 Bed
2 Bed
2 Bed
BELMONT 6104
MIDLAND 6056
MIRRABOOKA 6061
Approx. distance from CBD 7km Median house price $557,500
Approx. distance from CBD 16km Median house price $410,000
Approx. distance from CBD 10km Median house price $443,750
Located only 7km South West of the CBD, Belmont benefits from easy access to a number of major employment hubs in the area, including Perth Airport. It is a popular suburb with families due to its location and the availability of sought after schools in the suburb.
The housing stock offered in Midland is varied, with both units and detached homes proving popular. Easy access to the CBD and Perth Airport is provided via both motorways and railway. Acute investors will do well in the area thanks to an average rental yield of 4.9%.
Mirrabooka has been rapidly expanding in recent years. It offers easy access to the CBD and other employment hubs in northern Perth. A number of commercial and mixed use residential developments are expected to commence in the next year with an approx. value of $21M.
UNIT HOTSPOTS 2015 3+ Bed
3+ Bed
3+ Bed
2 Bed
2 Bed
2 Bed
1 Bed
1 Bed
1 Bed
Beckenham 6107
Churchlands 6018
Inglewood 6052
Approx. distance from CBD 13km Median unit price $397,000
Approx. distance from CBD 7km Median unit price $450,000
Approx. distance from CBD 5km Median unit price $386,250
Beckenham offers an affordable alternative to the inner city markets. A wide range of dwelling types will suit both investors and first home buyers. It is well connected to CBD and southern Perth commercial and industrial areas. Investors do well in Beckenham with an average yield of 4.7%
Churchlands is in close proximity to a range of shopping and entertainment options, including City Beach and Perth CBD. Approx. $21M of developments are expected commence in the next 12 months, with the Selby St Mixed Use Project adding 96 new units.
Inglewood benefits from easy access to the CBD via roads and buses and is in close proximity to the Maylands train station. Educational institutions are nearby, including Inglewood Primary, Mt Lawley Senior High School and Edith Heading Cowan University campus.
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RENTAL MARKET ANALYSIS UPCOMING DEVELOPMENT FY2016 $600
Residential $2.6 B
10%
Commercial $2.7 B
$500
6% 4%
$400
2% 0%
$300 -2%
% Change
Median Weekly Rent
8%
-4%
$200
-6% -8%
$100
-10% $0
-12% Sep-13
Dec-13
3Bed House
Mar-14
Jun-14
2Bed Unit
Sep-14
Dec-14
Mar-15
% Change House
% Change Unit
Perth property has seen a soft decline trend over the past twelve months, as evidenced by deceasing rents and median prices. However, a further $8.3 B worth of development projects is expected to commence in the near future, showing some signs of improvement.
Industrial $1.1 B
Infrastructure $1.9 B
2015 HOTSPOTS SNAPSHOT Belmont
Midland
Mirrabooka
Beckenham
Churchlands
Inglewood
LGA
Belmont
Swan
Stirling
Gosnells
Stirling
Stirling
Location Relative to Perth CBD
7km SE
16km E
10km N
13km SE
7km NW
5km NE
Property Type
House
House
House
Unit
Unit
Unit
Median Price FY2014
$550,000
$405,000
$415,000
$390,000
$395,000
$380,000
Median Price FY2015
$557,500
$410,000
$443,750
$397,000
$450,000
$386,250
Yearly Median Price Change
0.0%
+1.0%
+6.9%
+1.8%
+13.9%
+1.6%
Development Spending FY2014 – FY2015
$27.5M
$386.1M
$9.1M
$53.4M
$4.4M
$11.5M
Development Spending FY2016
$2.2B
$207.7M
$101.8M
$40.1M
$21M
$29M
Major Project FY2016
Belmont Park Racecourse Development
Midland Gate Shopping Centre Expansion
Chesterfield Rd Mixed Use Development
Railway Parade Multiple Dwellings
Selby Street Mixed Use Development
Beaufort Street Mixed Use Development
*Disclaimer: Project Development data includes projects completed between 1/7/2013 and 30/06 2015 and projects commencing construction 1/7/2015 onwards in the Perth Metro Region. Estimated value represents construction and land costs, and does not necessarily represent commercial and/or sale value. Source: Cordell Database, Pricefinder, Real Estate Institute of Western Australia, Western Australia Department of Planning
PERTH MEDIAN HOUSE PRICE SUBURB MAP FY2015 LEGEND DATA NOT AVAILABLE
< $500,000 $500,000 - $750,000 $750,000 - $1,00,000 $1,000,000 - $1,500,000 $1,500,000 - $2,000,000 > $2,000,000
20 KM FROM CBD
HOTSPOTS RENTAL YIELD Suburb
House
Unit
Belmont
4.3%
5.6%
Midland
4.6%
5.2%
Mirrabooka
4.8%
5.5%
Beckenham
4.4%
5.1%
Churchlands
3.6%
4.7%
Inglewood
3.6%
4.9%
*IMAGE* 5.16cm HIGH 6cm WIDE
Source: Western Australia Department of Development, Pricefinder, Real Estate Institute of Western Australia, ESRI
PERTH MEDIAN HOUSE PRICE SUBURB MAP FY2015 SUBURBS $2,000,000
MOST EXPENSIVE SUBURBS Median House Price
Rental Yield
Peppermint Grove
$2,912,500
2.6%
Dalkeith
$2,385,000
2.6%
Cottesloe
$1,710,000
3.2%
Suburb
MOST AFFORDABLE SUBURBS Suburb
Median House Price
Rental Yield
Stratton
$360,000
5.6%
Koongamia
$362,500
5.1%
Middle Swan
$367,000
5.5%
*IMAGE* 5.16cm HIGH 6cm WIDE
Source: Western Australia Department of Development, Pricefinder, Real Estate Institute of Western Australia, ESRI
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Heading
PRDnationwide does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the Information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one way or the other in relation to the accuracy of such information, figures and projections. PRDnationwide will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material. Prepared by PRDnationwide Research © All medians and volumes are calculated by PRDnationwide Research. Use with written permission only. All other responsibilities disclaimed. © 2014
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