PERTH AUSTRALIA'S PROPERTY PARADISE

11th May 2006

The latest median price figures reveal Perth remains a real estate paradise for investors, according to a Perth-based property buyer's consultancy.

Property Wizard's buyer's advocate Trevor Dunkley said despite the median price of established homes in Perth rising 18.2 per cent in the year to December 2005*, Perth still provided a haven for prime investment compared with capital cities on the Eastern seaboard.

"The figures translate to a median house sale price in Perth of $325,000," he said.

"In comparison, the median sale price in Sydney in December last year was $518,000 and $360,000 in Melbourne in February this year, so it's clear that homes in the West are still far more affordable than other states. "

Property Wizards said research indicated interest on an 80 per cent loan for a Perth median priced house cost a third (33 per cent) of WA weekly earnings (AWOTE); in Sydney it equates to about half (52 per cent) of weekly wages and 38 per cent in Melbourne.

Mr Dunkley said several key factors were ensuring the Perth real estate market was continuing to provide prime investment opportunities.

"Driven by our wealthy resource sector, WA is enjoying strong economic growth at around 7.6 per cent as compared with about 4.1 per cent nationally," he said.

"The state is also recording the lowest unemployment rates, the highest employment growth and population growth above the national average - which all means Perth will continue to be a hot attraction for families and business people in the years ahead.

"Those factors, together with a low vacancy rate of 1.6 per cent and the fact that there is a limited supply of quality properties on the market, means house prices are likely to continue to be driven further upward."

Median house prices in Perth have grown by an average 15.2 per cent a year over the past five years.

PERTH'S HOTTEST AREAS

Mr Dunkley said there were a number of key areas investors looking to buy in Perth would do well to turn their attention to.

"Perth's coastal strip is a haven of opportunity, particularly in the southern corridor from Rockingham to Mandurah, where homes are considerably more affordable than similar areas to the north of the city," he said.

"Prices in the area will continue to escalate as progress is made on construction of the Perth to Mandurah rail line, which will slash travelling times to the city, and also as key development projects are completed."

Mr Dunkley said areas in Kwinana, just north of Rockingham, that were close to the ocean were also doing well.

"Suburbs including Parmelia, Medina and Calista have enjoyed good growth in recent times but many can still be snapped up for well below Perth's median price," he said.

"It's incredible given that the areas are within five kilometres of the coast, lie just 35 kilometres from the city and are undergoing refurbishment programs.

"Other southern coastal and near-coastal suburbs to consider are Coogee, Hamilton Hill and Spearwood, which are attracting much attention due to plans to create a marina in Coogee and have the added attraction of being close to the Fremantle café and restaurant strip.

"North of Perth, the near-coastal suburbs of Padbury, Craigie, Beldon and Heathridge are the pick of the bunch, offering affordable properties that are close to the ocean, within 20 kilometres of the city and offered great transport access and lifestyle facilities."

Mr Dunkley said investors should focus their attention on older-style homes situated on good sized blocks, possibly with development potential, in order to secure a superior investment.

Property Wizards Buyer's Agency is situated in Subiaco and is one of only a handful of licensed specialist property buyer's agents in Perth.

*Figures from the latest quarterly report by the Real Estate Institute of WA.