PERTH’S TOP FIVE AFFORDABLE INNER CITY SUBURBS
RP Data recently released a list of the top five most affordable suburbs within 10 kilometres of each CBD in Australia. In terms of Perth housing, the following suburbs topped the list:
• Osborne Park
I thought it would be worth profiling these suburbs to assist anyone thinking about buying a home or investing in one of these areas. According to RP Data, suburbs such as these are likely to take off in the near future given the rising price of inner city suburbs. With more ‘desirable’ locations priced well out of many buyers reach, these suburbs provide a sensible alternative for those looking for close proximity to the CBD without the prohibitive price tag.
Located just a 10 minute drive north of the Perth CBD, Glendalough is nestled between Lake Monger and Herdsman Lake where public open space and natural beauty is outstanding. Glendalough is also only a 10 minute drive from the hustle and bustle of Subiaco or the peace and serenity of the coast. In terms of connectivity, Glendalough is located close to the freeway and the train station provides direct access to the CBD. There is also good amenity such as Innaloo Shopping Centre in close proximity.
The property market in the area is dominated by multi residential property with houses only comprising 9% of the market while 51% of dwellings are flats, units or apartments. This makes for a high number of rental properties in the area with 60% of residential housing made up of rentals. The higher density and mix of housing is likely to have contributed to the fact that the suburb is somewhat undervalued in the real estate market.
This is particularly compared with the neighbouring suburbs of Churchlands and Mount Hawthorn which are highly sought after locations that attract premium prices, with median house prices sitting at $1.3M and $901,000 respectively.
According to REIWA, Glendalough has experienced a significant 17.5% growth in house prices in the last 12 months, 1.3% in the last 5 years and 8.8% over 10 years. This is encouraging for those looking to enter the market in this area where the likelihood of continued growth is high. RP Data records the median house value in Glendalough at $438,995.
Just one suburb north of Glendalough, the suburb of Osborne Park is similarly close to shops, has convenient freeway access and a local train station. Traditionally an industrial suburb the area is not known for its residential housing market. Like Glendalough the property market is dominated by multi-residential housing with duplex, villas and town houses comprising 46%. While not as attractive in terms of public open space as some of its neighbouring areas, Osborne Park has still experienced positive growth with a 2.9% increase in prices in the last five years and 8.3% in the last 10 years (REIWA). RP Data records the median house value in Osborne Park at $463,414.
Heading further north of the CBD, Westminster has a different housing profile to Glendalough and Osborne Park with 57% houses and only 1% apartments, flats or units. There is also a higher ratio of families in the local area which means there are a number of local schools to choose from.
Westminster is located at the junction of Reid Highway and Wanneroo Road and while it is well serviced by main roads it does not have convenient access to the freeway or a train station.
Westminster has experienced positive price growth in recent years with 8.4% growth in the last 12 months and similarly 8% in the last decade. RP Data records the median house value in Westminster at $489,224.
Bounded by Morley Drive and Wanneroo Road, Nollamara is well serviced by these main roads while also having the benefit of closer proximity to the Stirling Train station and Freeway than Westminster. The suburb constitutes 51% duplex, villa and town houses with 42% houses. This gives the area a nice mix of single and multi-residential properties.
The area has experienced significant growth in the last 12 months with 10.6% growth in median prices and 7.5% over the last 10 years. The area also attracts the strongest rental returns out of all five locations, with a median rent of $325 per week. RP Data records the median house value in Nollamara at $495,617.
Located 20 minutes east of the Perth CBD, Redcliffe is next to the airport and in a prime location for fly in fly out workers or those wishing to be close to transport, city and river. It is only a five minute drive to Ascot Race Course and the Swan River while only a 10 minute drive to Guildford and the Swan Valley. While the area lacks public transport connectivity such as a train line, the state government’s plans for an airport rail link may have a very positive impact on property market value in the area.
There is not as much of a mix of housing types in Redcliffe compared with the other areas we have looked at. 81% of dwellings are detached houses and there is also a larger component of families with children in the area. The suburb has experienced a 10% growth in median house price in the last 12 months, however median rental returns are currently only $260 per week which is the lowest of the areas covered. RP Data records the median house value in Redcliffe at $523,014.
Overall, each of these suburbs have positive attributes that are likely to bode well for future price growth.