RENTAL MARKETS: Spotlight on Spearwood
After four years of tough rental conditions in Spearwood, things have turned around. Renters are calling, texting and turning up at home opens, and multiple rental applications are being received for some rental properties. Here’s the full story …
Located 18km South-West of Perth CBD, Spearwood boasts a close-knit community with a village atmosphere. People who grew up in Spearwood stay in Spearwood. And no wonder – it’s 5 minutes to Port Coogee Marina and the beach, and Fremantle’s just up the road with it’s vibrant cafes and restaurants.
But it has been tough for investors for the last four years. With excess property stock on the market, the median unit rent had dropped by a huge $100 per week and there were not enough tenants to go around.
Now that’s all changed. The excess stock of rentals and properties for sale has been taken up, renters are calling, texting and turning up at home opens, and multiple rental applications are being received for some rental properties.
The pictures and explanations below show how this real-life happening out in the field is starting to reflect in the latest market data from the Real Estate Institute of Western Australia (REIWA) and realestate.com.au.
1. RENTAL TRENDS
Rents are rising and this is great news for investors!
Spearwood is located in the local government area of Cockburn and here rents have increased for 3 quarters in a row.
From $310 per week in the June 2018 quarter, to $318 pw in September 2018 up to $343 pw in the March quarter 2019.
The number of tenants looking for rentals is increasing every week, putting more pressure on rents to rise further.
This means if an investor buys now while purchase prices and rents are both still low, their rent is likely to rise, meaning a great increase in their return on investment.
Because they are buying at the bottom of the market, there is potential for good capital gain as well.
The chart below shows the sharp upturn in the last 3 quarters.
2. COMPETITION FOR RENTAL UNITS
The supply of rental units in Spearwood is low compared with other oversupplied suburbs in Perth.
The suburbs in this chart all have populations of 10,000 to 11,000 people, so they should have similar numbers of rental units available.
On 18 March 2019 the number of rental units advertised was compared for the 4 suburbs and the results were surprising!
Spearwood had only 9 units advertised for rent while Rivervale had 63, East Perth 175 and Perth city 210 ads for rental units.
The information suggests that renting out a unit in Spearwood would be far easier than in those other areas because there is less competition from other units.
Also, the low supply means more pressure on Spearwood rents to rise further, a great financial benefit for the investor who buys now
Competition to sell units is much lower in Spearwood!
The suburbs of Spearwood, Rivervale, East Perth and Perth city all have populations of 10,000 to 11,000 people, so you would think they should have about the same number of units for sale.
Surprisingly, the other suburbs have far more units for sale than Spearwood!
Spearwood had only 19 units advertised for sale while Rivervale had 86, East Perth 159 and Perth city 198 ads.
The low supply in Spearwood means, as market activity increases, buyers compete for properties, forcing prices up.
This increases potential for capital gain for the investor who buys a unit in Spearwood now at the current low prices!
After four years of downward movement the Spearwood rental market has begun its recovery with three consecutive quarters of rental increases. Demand from renters has strengthened and rents appear on their way to a full recovery.
Getting in now while purchase prices are still low could help to put an investor ahead of the curve, ready to enjoy the benefits of future rental growth.
To get in the game now while prices are still at rock-bottom, rents are growing and negative gearing benefits are protected, here is an offer.
Spearwood Quarter apartments at 326 Rockingham Road Spearwood represent amazing value with happy tenants returning up to 6% rental yield and growing.
It’s a boutique complex of only 10 apartments located walking distance from Phoenix Shopping Centre and 5 minutes’ drive to Port Coogee Marina and the beach.
Securely locked behind electric gates, when you step inside your apartment you are greeted with a spacious, light living area opening to a private outdoor space.
With the terrific floor plans, fabulous features and extras, there won’t be a day you or your tenant will regret living here.
1×1 from $260,000
2×1 from $270,000
2×2 from $290,000
- Your chance to secure HAPPY TENANTS at rental returns of up to 6% p.a. AND RISING.
- There is no better time to invest in one of these low-maintenance, low-levy apartments.
- Put this one on your “MUST SEE” list and call now for more information
- This is NOT a state housing or shared equity program and the price is for the WHOLE apartment and not just a share with state housing as some other units are offering.
- Don’t miss your chance to get out of the rent trap and into home ownership
- For LESS THAN WHAT YOU PAY IN RENT!*
- Seize the opportunity to own one of the last 3 stunning home buyer apartments
- At prices never to be repeated!
- Air-conditioner in the lounge AND main bedroom
- High ceilings
- Gated secure complex with intercom to each apartment
- Internal downlights
- Stainless steel appliances
- Soft-closing drawers
- Stone benchtops
- Built in mirrored wardrobes in all bedrooms
- Timber laminate flooring with sound insulation
- Roller blinds in all living areas and bedrooms
- Quality bathroom tiles, china basins and toilet suites
- Flick mixer taps throughout
- Heater/light/exhaust in bathroom and ensuite
- Spacious balconies/paved courtyards offering a seamless inside/outside flow
- Covered parking bay for each apartment plus visitor bays
- Secure key locks for all sliding windows and doors
- Lockable storage
Don’t miss out on this
- GREAT LEASED INVESTMENTS AVAILABLE
- ONLY 3 VACANT UNITS LEFT FOR LUCKY HOME BUYERS
- LOW STRATA LEVIES
- STUNNING VALUE AND QUALITY BUILT!
Call Trevor Dunkley on 0409 691 201 for more information.
326 Rockingham Road, Spearwood
Love where you live. Profit where you invest.
Learn more about this property, available to purchase through Property Wizards.
Disclaimer: Please note these properties are not buyer’s agency purchases, they are property we are selling, in which the agent has an interest. There is no buying fee or authority and we represent the seller. The photo in this post may be of a different apartment. The units are being sold unfurnished. *Conditions apply. Buyers should only rely on their own independent due diligence.
Source of data: REIWA, realestate.com.au 18Mar19
If you’re ready to invest and you’ve got any questions about finance, call us for a free Financial Health Check: 08·9381·7450 or download our Finance Services information.
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