Joondalup

17th April 2007

Nestled along Perth's north coast, Joondalup, offers cashed-up, eagle-eyed investors a range of modern property options, according to Liz Sterzel of Property Wizards.

The Perth-based buyers' agent says Joondalup is a self-sufficient city that has already performed well, and although it's now a more expensive area, selective investors can still find worthwhile investments.

"Well planned infrastructure and continued development in Joondalup has set the framework for further growth and further extensions to the freeway and railway from Perth further north will make it more attractive to residents," she says.

THE AREA

"Joondalup is modern and clean and offers residents great facilities on their doorsteps, situated away from the crowded, busy Perth centre, so it is perfect for a quiet lifestyle," Sterzel says.

"Joondalup is becoming its own hub and has everything that the city of Perth offers - it's a developing, modern city which has been pre-designed as such, so it's well suited for all demographics and is filled with facilities to maintain a brilliant lifestyle."

Joondalup is located north of Perth city, and takes about 35 to 45 minutes to drive to by car.

Sterzel says the city boasts a wide range of homes including new inner-city terrace houses, four bedroom, two bathroom homes as well as apartments set on top of offices, all with great access to lifestyle features.

"Joondalup is fairly close to the beach with good shopping centres, cafes and bars, cinemas, an executive golf course estate, university and TAFE campuses and a growing hospital which is well connected to Perth by freeway and railway," she says.

GROWTH

The population of Joondalup has been rising steadily and rapidly, and forecasters are predicting the city will become home to half a million residents by 2030.

"People are being drawn to Joondalup by its expanding job market and infrastructure within industry and commerce as well as education," Sterzel says.

"In less than 25 years, the population of Joondalup is estimated to reach 500,000 - and around 20,000 of those are expected to be students.

"At the moment, Joondalup is home to around 13,000 students who attend the university, TAFE, police academy or nursing college."

Sterzel says significant investment and development in Joondalup will also help to boost future growth levels.

"Landcorp has contributed $270 million, the State government has put in $500 million and local government $25 million towards development of the city," she says.

Growth in Joondalup over the past five years has been 18.6 per cent and 16.1 per cent in the last 15 years, compared to Perth, which over the last five years has grown at 18.5 per cent and 10.7 per cent over the past 15 years.

"Based on population growth and development, there's good reason to predict that some properties in Joondalup will see superior growth compared to other areas in Perth, but only a small number of properties have the potential to benefit from the expected growth," Sterzel says.

"Some properties in Joondalup could be star performers, while others may not be so successful, so it's important to know what you're looking for when buying property in the area."

THE MARKET

"A driving force in Joondalup's property market is the demand for housing, and with the population expanding rapidly, demand is set to keep on growing," Sterzel says.

"The large number of students in Joondalup has a big impact on property prices and growth in the market and at the moment, there is a shortage of suitable accommodation near to the university and other education campuses, especially in the inner city area."

Sterzel says solid properties in Joondalup are looking good growth wise, but they are no longer cheap to buy.

"A four bedroom, two bathroom townhouse with studio, suitable for students, could fetch around $450,000 and a near new three bedroom two bathroom townhouse in a golfing estate is now priced around $500,000," she says.

"The rental return of a four bedroom, two bathroom, furnished, student accommodation now sits at around $2,500 a month.

"Typically, student accommodation is a self-contained room, which now fetches around $145 in rent a week, which that has already risen from around $120 at the beginning of the year.

"A three bedroom, two bathroom townhouse could be leased on an on-going basis, and you could expect a return of around $350 a week, or for short-term stays which can generate a return of around $675 a week."

INVESTMENT OPTIONS

Sterzel says investors need to have a keen eye in order to pick out properties that will benefit from the next wave of growth in Joondalup.

"There is a whole spectrum of properties on the Joondalup market ranging from great to not so good, and there are many interweaving factors to consider when looking for a winning buy in the area," she says.

"Only about 5 per cent of properties are well placed to take up the next wave of growth in Joondalup, so it's generally a good idea for investors to seek out expert, local knowledge."

PRO'S AND CON'S: JOONDALUP

CON'S

Sterzel says the distance between Joondalup and Perth could still be a limiting factor for the property market.

"Joondalup is a fair distance from Perth, which means the pool of buyers is limited - and that could work to your advantage initially, but may affect you in the long run when it comes to resale," she says.

"The entry cost into the Joondalup market is now quite high with property prices on the rise, so make sure you are well informed if looking to buy in the area."

PRO'S

"The great thing about Joondalup is that it's a self-contained city not far from the ocean with brilliant lifestyle facilities that are attracting people into the area," Sterzel says.

"Joondalup is fresh and new with a lake, hospital, shopping and education facilities, and has a diverse range of housing from inner city student rooms to suburban houses on quiet streets."

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