Report says Yanchep one of the top places in Australia to invest

Yanchep is one of the top 20 suburbs in Australia for residential property investors looking for somewhere to buy, according to new research.

YANCHEP is one of the top 20 suburbs in Australia for residential property investors looking for somewhere to buy, according to new research.

Research carried out by Ethos Urban for ME Bank has ranked Yanchep number 11 due to the suburb set to benefit from the Yanchep rail extension

The Australia’s best places to invest report said a range of qualitative and quantitative criteria were applied to identify suburbs with the best investment prospects.

“These factors included how new transport infrastructure would re-shape the investment landscape across the range of suburbs, average rental yields, recent population growth, median house prices, average rental prices together with lifestyle appeal measurables such as the availability of coffee shops and cafes,’’ the report said.

Woolloongabba in Queensland was rated number 1 on the list with Ellenbrook* in the City of Swan coming in at number 6.

In a statement on October 28 the Urban Development Institute of Australia WA (UDIA WA) said its latest statistics showed the City of Wanneroo experienced the biggest jump in sales in the September quarter with the number of new lots sold increasing by 54 per cent over the quarter.

UDIA WA chief executive officer Tanya Steinbeck said strong underlying demand for new housing was ongoing even without the incentive of extra cash grants from the government.

“Buyer’s confidence has been buoyed by WA’s strong economic performance, low unemployment rates and accommodative lending rates,’’ she said.

“The ongoing rental crisis is also influencing people to buy given that rents remain high and accommodation options are scarce.’’

The lift in sales in Wanneroo was predominantly due to sales in coastal areas including Alkimos and Eglington, which will benefit from the Yanchep rail extension.

Banksia Grove was another Wanneroo suburb to have a lift in sales.

Yanchep Lagoon is popular with swimmers and sunbathers. Picture: Anita McInnes

Housing Industry Association economist Tom Devitt said ABS data showed the value of loans to investors continued to increase in October to reach its highest level since April 2015, just prior to Australian Prudential Regulation Authority (APRA) imposing macro-prudential restrictions on investors.

On October 6 APRA increased the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.

APRA told lenders it expected they would assess new borrowers’ ability to meet their loan repayments at an interest rate that was at least 3 percentage points above the loan product rate up from the buffer of 2.5 percentage points commonly used.

Mr Devitt said despite the near record level of investor activity, investors accounted for a relatively modest 33 per cent of the total lending in October.

“This is well below their peak of activity in the market in 2015 when they reached 46 per cent of the value of lending,” he said.

“The continued strength in the owner-occupier market means that investor activity does not warrant a return to punitive restrictions on investors.’’

Real Estate Institute of WA data shows it took a median of 16 days to lease a rental during November, which was one day faster than October and one day faster than November 2020.

Butler was one of the suburbs to experience fast median leasing time but it missed out on making the top five suburbs, which recorded leasing times of between 11days to 13 days.

There were 8620 properties listed for sale on at the end of October, which is three per cent more than September.

Darch was one of the top four suburbs to record the biggest increase in total listings (percentage wise) on at the end of October.

Jindalee also recorded a notable growth in listings.

In September the McGowan Government said the Yanchep rail extension operation date had been extended to late 2023 due to record low unemployment and supply and equipment pressures creating an incredible demand across WA’s construction and infrastructure sectors.

The Australia’s best places to invest report said to provide an initial list of suburbs to apply a detailed level of evaluation, a search was undertaken of all major road and rail transport infrastructure projects in Australia.

“The application of this filter produced a list of approximately 126 suburbs where a significant impact from new transport infrastructure is anticipated.

Amateur fishers search the reef at Fisherman’s Hollow and Yanchep Lagoon during abalone season. Picture: Anita McInnes

The first-round evaluation criteria provided a series of filters based on datasets measuring 12 criteria, including population growth, asking rent growth, median price growth, number of sales, socio-economic indexes for areas (SEIFA – Australian Bureau of Statistics [ABS]), rental yields and the anticipated impact of transport infrastructure.

“These criteria were applied with various weightings to reflect their influence on perceived value.

“Based on this, each suburb was ranked from 1 to 126.

“Their purpose was to establish suburbs likely to appeal to the investor profile established in the research parameters.’’

The focus was on locations where recently completed, soon to be completed, or under construction transport infrastructure was expected to be a major driver of land value growth and, potentially, urban renewal.

A significant weighting was given to the transformative potential of the new transport infrastructure.

“For example, a location which has not previously been served by rail is afforded a significantly higher rating than a location which is set to have its rail service upgraded.’’

The report said although some evaluation criteria were objective (sourced, for example, from ABS data), other criteria, such as the impact of transport infrastructure or the vibrancy and attractiveness of a particular location, required a more subjective judgement.

*On Friday, December 3 a Metronet spokeswoman said the Morley-Ellenbrook line, including Ellenbrook station would be operational and have passenger services running by the end of 2024.