Kwinana and Mandurah: New Perth Hotspots

Kwinana and Mandurah: New Perth Hotspots

Mandurah real estate

SUBURBS with rail links in Perth are among those to get a "tick" in the latest report from property analyst and writer Terry Ryder.

Mr Ryder, director of property website, has released his quarterly report on the state of the nation’s property market, with tips for the coming year.

“Perth appears to be facing a land shortage as developers try to release enough blocks to meet demand on the urban fringe,” Mr Ryder claims.

Bringing together information from a range of sources, the Ryder Report says land sales have doubled over the past 18 months and developers have brought forward land releases for the sixth quarter running. Notwithstanding the fact that typically there are anywhere between 1000- 2000 lots perpetually on the market in Perth, Mr Ryder quotes areas such as the City of Wanneroo in the north metropolitan corridor where 738 lots sold in the March quarter this year, compared with 355 in the March quarter 2011.

Among the report’s highlights:

■ WA is still the nation’s powerhouse and the gap between the best and worst performing states appears to be widening. CommSec says WA and the Northern Territory are likely to hold their top positions over 2013.

■ Qantas is increasing services and investment in WA, raising its bets on demand for air travel among mine workers.

■ WA is adding 226 people to its population each day. Numbers grew 83,000 last year.
■ Construction on Perth’s major stadium will begin soon, after the State Government announced a preferred $30 million tender for the 18-month preparatory site works.
Major construction on the Burswood peninsula is expected to begin late next year.

■ Urban infill is likely at the Princess Margaret Hospital site, which is tipped to be rezoned for apartments and other commercial facilities. Mr Ryder says LandCorp has confirmed it could also add to the stock of inner-city residential sites in 2015 when PMH is decommissioned.

■ A $70 million water park is to be built in Perth’s north eastern suburbs. The $1.5 million first stage, a three storey high waterslide playground, is expected to be finished by December after getting planning approval from the City of Swan and a grant from the Federal Government. To be known as Outback Splash, the park will be built in six stages over 10 years.

■ Multi-million dollar developments are taking place in the city, which will result in apartments, offices and a hotel.

■ Mr Ryder said a shortage of stock had been pushing up prices in Perth.

THE affordable southern belt of Perth – home to some of our cheapest suburbs – has strong potential for price growth. According to a list of best capital growth performers in Perth in the April edition of The Ryder Report, the standout area “was the cluster of cheap suburbs in the south, which includes Medina (No.1, 14 per cent growth rate), Orelia (No.2, 13.7 per cent growth rate) and Calista (No.5, 12.6 per cent growth rate).”

"We call it the Kwinana precinct,” Mr Ryder said.

“Hotspotting sees potential in the Kwinana precinct because of plentiful work opportunities, the facilities of the Kwinana town centre, plenty of schools, train links to the CBD, affordable housing (with many suburbs having median prices below $300,000) and the natural beauty of green space such as The Spectacles Wetlands.’’

The City of Kwinana is a “hyper-growth” council saying “every 4 hours, a new person moves into the area”. It predicts about 7000 new homes will be built in the area as the population doubles over the next decade.

Mandurah makes national list

IN his Longshots Report “10 Locations Set To Zoom IF...”, property rider Terry Ryder has put forward Mandurah as the only WA inclusion in the national list.

"Mandurah was known nationally for its population and property growth up to 2007, when the market went into serious decline,” he said. “After four to five years of poor performance, (it) is showing signs of a comeback, assisted by its popularity with mining personnel (FIFO workers) who choose the region for its water-based lifestyle.

"Mandurah’s popularity as a sea-change destination has led to the emergence of new restaurants, shopping centres and boutique retail outlets. The City hosts numerous festivals and special events.”

Mr Ryder’s longshot report quotes local authorities as saying planning is starting to develop more economic opportunities to keep pace with the city’s rapid growth. That includes short and long-term planning for a major revitalisation of the city centre and foreshore precincts, better transport links to the foreshore, a range of upmarket and budget holiday accommodation, the $75 million expansion of Peel health campus, the Point Grey development and greater tertiary education opportunities at local campuses.

In addition, the report notes that the State Government has committed $40 million to replace the ageing Mandurah traffic bridge, and a 500-seat tavern is proposed for the Mandurah Ocean Marina.

LandCorp’s Mandurah Junction will transform a 15ha site into residential development for up to 2000 people, with 9500sq m of retail and commercial space included.

The Mandurah Aquatic and Recreation Centre, opened in 1982, is to be redeveloped and refurbished, with works set to begin in October.

What others say:

Damian Collins managing director Momentum Wealth

“There is a train line in close proximity as well as the freeway and it’s not too far from the beach and Rockingham. Also prices are relatively inexpensive. However there are a number of negatives to the area. It’s close to the industrial area and has a negative perception among people buying homes. It’s an area that we think will not be significantly re-rated by the market.”

“It has some positive attributes, including the marina, the beaches and access to the freeway and train line. It still has a long way to go before it will provide enough employment to achieve its goal of being a strategic centre.’’

“Train lines will have a significant impact on property prices longer-term. It is one of the important criteria we look at when assessing whether an area meets our investment grade. People will pay a premium to be close to public transport.”

Gavin Hegney, founder Hegney Property Group

“Anybody who wants to know what’s happening in Kwinana just has to take a drive down to the town centre to see what’s going on. It’s a very active local council. Some areas, albeit low socio-economic, have more planned than some higher socio economic areas. A lot of the housing is sub $350,000, and for that you can get a substantial home, on a train line, near work and established facilities. It’s a bit of a no-brainer. It’s had a bit of stigma but that’s changing as the area is changing and growing.”

“There is a lot going for it. It has some of the cheapest beachfront land in Perth. I like Halls Head, Falcon and there’s some interesting options near the estuary. I also like the town centre, you can get a really nice luxury apartment there. I also like some of the northern areas like Madora, Golden Bay and Singleton. But I would caution anyone who thinks you can just buy anywhere in Mandurah and make money.’’

For the original article from Perthnow click here.