What will you be saying in 20 or 30 years from now, looking back on a particular suburb and kicking yourself for not buying real estate, when looking back you, would in hindsight, buy 10 properties with no question.
Have a look at the couple of posters we have from estates advertised by Peet & Co back in 1906. Ok maybe 20 or 30 years is not as far back as that, so growth would not be as much. But it is fairly likely that there will be some sort of growth in the area, and going back to 1970/80 sale prices in the Cannington area varied anywhere between $45,000 – $75,000, where as now the median price range sits around $430,000. Will we experience this sort of growth over the next 20 to 30 years. I assume that in 10 years time you will look back on 2011 and 2012 and say, those were the years I should have bought property, because it will never be as affordable as back then.
With interest rates on the way down, and affordability at a high there has not been a better time to buy real estate in the past 4 years.
This growth will obviously be city wide, with some areas excelling further than others. These locations will most likely be the areas positioned within close proximity to the Perth CBD, say within 10km. Areas like Victoria Park, Belmont, Cannington, Subiaco, Mount Lawley, South Perth, Bentley, St James, Inglewood, Bayswater, Dianella, Morley just to name a few. Area’s further out, within newer Estates such as Canning Vale, Atwell, Bibra Lake and Aubin Grove will continue to grow, but not for growth in land value, but as the suburbs are new, housing prices are kept high due to newer homes continuing to be built. Eventually when the estates are full, and land is scarce, values will come down with depreciating buildings.
Here is another poster we bought from the Historical Society in Nedlands, showing lots in Victoria Park Station Estate selling from £25 with £2 deposit and £1 monthly. All 1/4 acre lots in what is now Lathlain. These sized lots are now very rare to find, with an increase in density allowing for subdivision, not many of the 1012sqm blocks are left. As Lathlain typically doesn’t sell too many homes per year, the chances of a property in the area with 1012asqm coming up for sale is unlikely, pushing prices up, with properties selling anywhere from $700,0000 to $1,100,000 depending on the size of the actual home. This is a classic example of proximity to city playing a factor in increasing the property value, where 80-90% of the values in established homes being solely in the land.
This is characteristic of many of the homes sold in a 10-12km radius of Perth City, where the majority of value lies in the land. These are the typical properties that will be sought after in high demand in the coming years, as a higher amount of development goes on, the amount of land are able to develop is much smaller. Cannington and 6107 still has many pieces of land that are developable, some owned privately, some owned by the government. As time goes on, these lots will slowly deplete, and the demand will increase significantly.