INVESTORS RIPE FOR PERTH RIVERSIDE PROPERTIES

July 7th, 2005

Property buyer's consultancy Property Wizards says Perth's riverside suburbs remain firm favourites among local, interstate and overseas investors alike.

Director Trevor Dunkley said many buyers were adamant they wanted to own property on or near the river, and it was no surprise, because of the numerous investment and lifestyle benefits on offer.

"Outdoor activities like boating, swimming, walking and fishing are right on your doorstop, as are great cafes and restaurants, picnic areas and also stunning night-time views," he said.

"Also, many of the riverside areas like Dalkeith, Crawley, Peppermint Grove and Mosman Park are older, more established, character suburbs offering homes on larger lots.

"Time and again the prestige of these areas wins over many investors, in particular, Australian expatriates." "And there's no doubt the proven growth and long-term attractiveness of these areas appeals to buyers looking for a steady, secure investment."

REIWA figures reveal many riverside suburbs have performed well over the past five years. Dalkeith has recorded an annual average growth rate in the five years to the end of the March 2005 quarter of 11.7%. Mosman Park came in at 11.5% and Peppermint Grove at 11.2%. Across the river in the southern suburbs, South Perth had recorded 11.6% and Bicton 12.5% a year for the last five years.

Mr Dunkley said those sorts of capital growth rates were great for investors who could afford to buy into the riverside suburbs. "Investors need to be aware though, that while there can be big benefits to getting in to Perth's prestigious riverside areas, there will be a holding cost to them," he said.

"This is because the value in properties along the riverfront is very much in the land, and many investment properties just won't give investors high rental returns. 'So, in the short term, investors will have to put in cash from their own pocket, but history shows if they've bought a good property, they should finish in front in the long term because the capital growth will outstrip their rental return."

Mr Dunkley also said it was worth looking a little further back, as great investments weren't limited to properties directly adjoining the water. "Great investment opportunities abound even if you are within a short driving distance of the river," he said.

"Suburbs like Claremont, Nedlands, North Fremantle and Alfred Cove are also smart places to look for a superior riverside buy," he said. Mr Dunkley said there was a huge variation in the price and type of properties for sale in Perth's riverside suburbs, leaving investors with a smorgasbord of opportunities to choose from.

He said the main factors driving property prices in these areas were the specific location within the suburb, the size of the lot and the age of the home. "What's true though, is that it doesn't have to cost a lot to invest in property near the Swan," he said.

"In Mosman Park for example, prices can range from around $149,000 for a one bedroom unit to more than $6 million for a character mansion on a huge lot. "Each property will clearly deliver different financial results - but what's exciting for investors is that it's not too late to get into these prime areas as there are still affordable, profitable investments to be made."

EXTRA INFORMATION

As at July 6, there were 213 properties (all types) for sale in the Western river suburbs north of the river*.
Prices ranged from $149,000 for a one bed unit in Mosman Park, to up to $6 million and more, with the median asking price at $975,000. There were 114 houses for sale in the Western river suburbs north of the river*. Prices ranged from $539,000 for a 1963-built 3 bed cottage home on 433sqm up to $6 million and more, with the median asking price at $1,298,000. (*Mosman Park, Peppermint Grove, Dalkeith, Crawley, Nedlands, North Fremantle)
South of the river - west of the freeway As at July 6, there were 305 properties (all types) for sale in the Western river suburbs south of the river.*
Prices ranged from $135,000 for a 35sqm bedsitter and upwards to $6.4 million and more, with the median asking price at $585K (buying you, in one case, a well-maintained older 3x2 home on 500sqm).
There were 190 houses for sale in the Western river suburbs south of the river.*
Prices ranged from$290,000 for a 3 bed rear home and upwards to $6.4 million and more, with the median asking price at $750,000 (for, in one instance, a 12 year old double storey 4X2 on a 498sqm in Mount Pleasant).
(*Mount Pleasant, Applecross, Alfred Cove, Attadale, Bicton & East Fremantle)

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