“There is plenty of news suggesting that Perth’s real estate market is in a rebalancing phase. I think it’s too early to call a market recovery; however, with a number of suburbs recording some of the best value increases in Australia, the signs are good,” said Abbott.
“There is a tonne of affordable housing in Perth and some of the best rental yields in Australia.”
Wellard, in the City of Kwinana, is a potential Perth property hotspot, noted Mr Abbott. He also nominated Jarrahdale, a small historic town 45 km south-east of Perth, and Byford in the city’s south-east, as locations to watch.
“The beauty of these locations is that they offer first home buyers the opportunity to secure 3-bedroom houses for under $500,000,” said Abbott. The median price for a 3-bedroom house is $420,000 in Wellard, and $480,000 in Jarrahdale.
“I think these locations will also start to attract disaffected investors from Sydney and Melbourne who are tired of being priced out of the market, especially with yields of up to 6% available.”
Wellard’s long-term real estate prospects are being buoyed by its excellent transport infrastructure, noted Abbott.
“Wellard is on the train line and it has excellent bus services into the Perth CBD,” he said.
In Perth’s south-east, Byford, with a median house price of $420,000, is red-hot due to its location, improved infrastructure and affordability, according to Paul Curran, Principal of Raine & Horne Rockingham.
“Byford is part of the wonderful Shire of Serpentine Jarrahdale and only five years ago was virtually a country town,” said Curran.
“It now has a new country club, a Coles supermarket, a 7-Eleven, Krispy Kreme, Hungry Jacks and there is an Aldi on the way. This is a sure sign that major retailers believe that Byford is genuinely on the real estate map.”
On an average morning, it is less than 60 minutes door-to-desk from Byford to the Perth CBD by metro train from nearby Armadale, noted Curran.
“It wouldn’t be a huge stretch to extend the conventional metro line to include Byford, which currently has an irregular Transperth service,” he said.
Home to Serpentine Falls, a popular tourist attraction, Byford is close to a national park and just 50 minutes by car to Bunbury and 2.5 hours to the wineries of Margaret River.
“Byford’s proximity to the Perth CBD and south western WA will also help underpin property values long term. In the short term, we expect Byford to be on the radar of savvy buyers this spring,” said Curran.