NORTH COASTAL STRIP BOASTS PRIME PERFORMERS

31st January, 2006

Property buyer's agent Trevor Dunkley from Property Wizards predicts prime sections of Perth's northern coastal strip will continue to perform strongly in 2006, as Australia's love affair with the seaside continues.

His top four picks from the area are Padbury, Craigie, Beldon and Heathridge.

"While areas such as Hillarys, Kallaroo and Ocean Reef have in the past provided the best opportunities, it is now time to turn to their neighbouring suburbs for increased growth potential," said Mr Dunkley.

"Padbury, Craigie, Beldon and Heathridge remain much more affordable than the immediate coastal suburbs, and yet they are still very close to the ocean, have great access to the freeway and train lines as well as bus routes, schools, lifestyle and shopping complexes, so they all boast the key factors driving good growth."

Mr Dunkley said it was likely this year would see the four suburbs continue their 'catch up' phase.

"Along the northern strip, suburbs one back from the ocean have recorded growth levels very similar to coast-hugging suburbs over the past five years and there's no reason to expect that to change," he said.

Beldon had recorded 13.9 per cent average annual growth over the five years to September 2005, Padbury 13.3 per cent, Heathridge 15.5 per cent and Craigie 16.4 per cent.

Over the same period, Hillarys had recorded 13.1 per cent average annual growth, Kallaroo12.7 per cent and Ocean Reef 12.8 per cent.

"Because properties in suburbs like Padbury, Heathridge, Beldon and Craigie can on average be picked up for up to three quarters of the price of their more expensive neighbours, they are a clever choice for smart investors," said Mr Dunkley.

In the 12 months to September last year, Hillarys had a median house price of $500,000 while Padbury's median was $270,000.

The median in Heathridge was $246,500, $254,500 in Beldon and $240,000 in Craigie.

Mr Dunkley said the suburbs would become increasingly sought after as areas further north were developed.

"It's a common trend that as outer areas become more populated, demand increases for areas that are closer to the city and considered more convenient, so we expect them to do well over the medium to long term," he said.

He said rental returns for older houses in the suburbs were around 3.2 per cent to 3.5 per cent.

"This roughly means a house costing $320,000 would rent for between $200 and $210 a week - which is slightly higher than what a similar home in the areas south of Perth would fetch," said Mr Dunkley.