Could the rail extension to Butler signal the start of a property market surge?
Butler might be the end of the line when a new rail extension is completed, but the transport upgrade is expected to revive the suburb.
Property Wizards Managing Director, Liz Sterzel, was interviewed by Heidi Davoren for the April 2014 issue of API Magazine’s feature on Butler. Read some highlights from the interview below, and pick up API Magazine to get the complete picture.
What is the perception of Butler?
Established just 11 years ago, Butler is a new suburb with a growing number of housing estates. Some might refer to it as a place of suburban sprawl. Others refer to it as a new coastal suburb, and even liken it to Hillarys 30 some years ago.
Can you describe the mix of housing stock in Butler?
Because Butler is a new suburb you’ll typically find new, large three and four-bedroom houses on small blocks ranging from 400 to 600 square metres of land on average. It is also possible to find townhouses on blocks sized under 200 square metres. These tend to be surfacing along where the rail line extension is expected and are being targeted to investors.
Why do you rate Butler?
Typically this type of area is not where we recommend investors buy due to the long 40-minute drive from Perth and continued rollout of new housing. These tend to place downward pressure on house prices rather than upward pressure.
However we believe the future rail extension will generate more demand from homeowners wanting affordability and ocean lifestyle.
The enormous capital investment not only in the rail, but the parks, beach amenities and shopping will add further value to the suburb and could generate greater demand. The potential increase in demand as a result of these capital investments could see a tightening of housing prices in the future, but probably only once the suburb is completely built out. Investors should be aware that this could be quite some time.
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