South West region star performer for units

First time home buyers and property investors wanting to purchase a home in the current Perth property market should consider buying a unit in the south-west metropolitan region of Perth as this area delivers the highest capital growth for this class of property over the long term according to David Hobbs, CEO of Professionals Real Estate Group.
Mr Hobbs said that REIWA figures show that the annual average growth in the median price of a unit in the outer South West Perth corridor has been a massive 16.2% over the last decade ending the June 2011 quarter.
“The annual increase in the median price of units during the past ten years in the South West region has ranged from 11% in Coolbellup to 19.3% in Safety Bay. Units in this area of Perth are also very affordable with the median price of this type of property in the South Western corridor standing at around $323,000. One of the most affordable suburbs to purchase a unit in this region is Shoalwater where the median price of a unit is just $225,000. There has also been strong growth rates in the median price of units in other areas of Perth. For example, in Armadale, the median price of a unit has increased by 16% on average each year over the last decade while in the northern suburbs Girrawheen has achieved an annual price growth rate of 13% over the same period. In the central Perth area, Burswood has been a star performer with an annual capital growth rate of 20.3% over the last decade. Astute first home buyers can get their first rung on the property market through purchasing an apartment which is usually less expensive than buying a traditional family home. For example, in the near city suburb of Bayswater, the median house price is around $545,000. However, the median price of a unit in Bayswater is just $275,750 and over the last 10 years this type of property in Bayswater has achieved an annual average growth rate of 14.9% which is much higher than the average price growth rate for houses in the Perth metropolitan area during the same period. If you are planning to buy an older style apartment, a good tip is to check if there are any upgrades planned for the apartment complex such as installing security parking. These types of improvements can boost the value of apartments in the complex. You should also check how many owner occupiers have apartments in the complex as the higher the number the more likely the complex will be better maintained. In addition the fundamental rules of location apply to units as well as any other types of properties. Units that are located close to facilities such as shops and cafes as well as lifestyle attractions such as the ocean tend to achieve above average levels of capital growth over the long term. First home buyers and investors should also consider that over the longer term, the popularity of apartment living in Perth is set to increase due to the declining size of average families and our ageing population. Apartments also tend to have fewer maintenance issues than larger family homes which can represent major cash savings over the long term. This makes buying an apartment a very good long term investment. Currently, there is a good supply of competitively priced apartments in Perth which makes it an ideal time to consider making a purchase before market conditions favour sellers,” he said.
Please click here to view the pdf version of this article