North Wanneroo part of property recovery

0
875
Two Rocks has a median price lower than a year ago, but has shown growth in the latest quarter, according to Hotspotting founder Terry Ryder. Picture: Anita McInnes

TWO Rocks is in the news as an affordable place to buy this spring while Butler and Eglinton are in the top five most affordable coastal suburbs to rent.

On September 23, Hotspotting founder Terry Ryder said there were a number of suburbs with a median price lower than a year ago, but with growth in the latest quarter.

Mr Ryder said most of the locations exhibiting the trend were at the affordable end of the market including Two Rocks in the Wanneroo LGA (median price $370,000 – down 3 per cent in annual terms, but up 2 per cent in the latest quarter).

In Perth recovery back on track published on Property Observer Mr Ryder said the trend provided further evidence of a recent market turnaround.

He said Perth, in general terms, was a capital city leader on housing affordability (thanks to several years of price decreases).

“Against that background, a notable feature of our spring survey is the emergence of growth markets at the affordable end of the Perth market,’’ he said.

“The LGAs of Armadale, Wanneroo, Canning, Gosnells, Kalamanda and Rockingham all now have suburbs with growth momentum.’’

Mr Ryder said their spring survey showed the decline in the Perth property market had likely bottomed out, with a steady number of growth markets and improving number of consistency markets.

“There are now very few declining markets across the Perth metro area,” he said.

“This comes as vacancy rates continue to tighten and rents rise.

“New data from SQM Research shows that the Perth vacancy rate is continuing to fall.

“In 2017 the rate was close to 6 per cent and in mid-2018 it was still at 4 per cent – but now 2.9 per cent and trending in the right direction.”

Meanwhile, on September 16 the Real Estate Institute of Western Australia (REIWA) said Butler and Eglinton had made the top five in a list of the top 10 most affordable coastal suburbs.

According to reiwa.com data Butler was fourth with a median rent of $300 (up by $5 in the past 12 months) while Eglinton was fifth also with a median rent of $300 (no change in the past 12 months).

Other City of Wanneroo suburbs to make the top 10 list were Merriwa placed sixth with a median rent of $300 (up $5 in the past 12 months) and Ridgewood seventh again with a median rent of $300 (no change in the past 12 months).

REIWA president Damian Collins said as WA was currently the most affordable place to rent in Australia, there was no better time for tenants to live in a home that suited their lifestyle preferences.

“With coastal suburbs in high demand leading into warmer months, it is pleasing to see that it is now even more affordable to live in these desired locations, especially compared to the east coast which is unheard of for tenants to be able to rent a house in a coastal suburb for less than $450 per week,” he said.

Rental affordability has improved in Western Australia, according to the Real Estate Institute of Australia’s Housing Affordability Report which revealed the proportion of family income required to meet the median rent had improved to 16.4 per cent – a decrease of 0.1 per cent compared with three months ago.