CAUTION REQUIRED FOR 10km CBD RULE
November 2004

The popular strategy of sticking only to real estate close to the city could prove costly in Perth, says Property Wizards' Director Trevor Dunkley.

Mr Dunkley said the widely used property adage of "best to buy within 10 kilometres of the CBD" was again gaining momentum as inner city developments in Perth continued in fervour.

He said the climate was causing headaches for many investors, who were questioning more than ever whether their investment dollars would be better spent on real estate near the CBD or the sea.

"The message really is to remember that Perth is relatively unique and we have often defied national and international trends," Mr Dunkley said.

"A look at a map of Perth housing patterns reveals we've had 'ocean sprawl', not urban sprawl. Development has occurred up and down the coast and resisted moves inland.

"We don't believe the reasons for this are about to change - we are still a nation of sea huggers, with our lifestyle heavily focused on coastal activities. That suggests sticking only to property in Perth that is close to the city would be a mistake."

Mr Dunkley said while investments in certain areas close to the city could pay handsome dividends, ignoring suburbs such as Kallaroo on the northern coastal strip or South Fremantle could be costly.

"While some of the coastal suburbs are further away from the Perth CBD, they have consistently shown high growth levels," he said.

"On top of that, the proposed marinas at Port Coogee in the south and Ocean Reef in the north should see surrounding suburbs like Spearwood, Coogee and Hamilton Hill boom as a result of the new lifestyle attraction."

For more information, please contact
Mr Trevor Dunkley
Director
Property Wizards
trevor@propertywizards.com.au
Tel: (08) 9381 7450