Western Australia Real Estate | Still Opportunities in Perth Market

House price growth in the Perth real estate market has slowed but select locations will continue to rise and rents are set to increase 15 per cent or more, according to a property investment group. Written by Tracey Joynson for API Magazine, April 2007.

Hegney Property Group executive chairman Gavin Hegney says speculators in the real estate investment industry are being flushed out of the real estate market and the “buy anything” strategy will need to be replaced with careful choices.

“Price growth in the premium property sector in Perth should grow at 10 to 15 per cent whilst low price real estate property is predicted to move very selectively,” he says.

Real estate investors and Perth industry representatives at the launch of the 2007 Hegney Property Outlook Report were told that opportunities included the Scarborough beachfront and Claremont redevelopments, the new Port Coogee marina which will rub off on the nearby suburbs of South Beach, White Gum Valley, Beaconsfield, Spearwood and Munster and the Perth to Burnbury highway, known as the Peel deviation, which will revalue the strip from Halls Head to Port Bouvard.

Also, the planned Alkimos Eglinton real estate development, designed for 55,000 people, 40 km north of Perth will impact on that area while the extension of Marmion Avenue will benefit Yanchep and Two Rocks. Population growth, the resources boom and low unemployment continue in WA and the fundamentals of lack of supply, ongoing demand and growing returns remain – all pointing to continuing real estate Perth property price increases, Hegney says.

But risks include softening commodity prices, the flow-on effect from the drought, rising interest rates, delays to stamp duty reductions, and rising labour costs translating to increase infrastructure costs affecting the viability of some real estate projects which may stall WA’s growth and Perth’s and will impact on the housing market.

However, the long-term outlook for resource-rich states such as WA is strong, Hegney believes, because demand for Perth real estate from India will start to flow after demand from China begins to taper.

New Cycle | Rising Rents Lure Prospective Investors in Real Estate

Written for the Australian Investor Magazine for April 2007 on Page 7. Australian investors plan to plunge back into the residential property market during 2007 tot take advantage of a tightening rental real estate market, a survey suggests.

The number of Australians planning to buy an investment property in the next 12 months took a record 35 per cent leap from 577,000 in the September 2006 quarter to 779,000 in December 2006, the survey conducted by Nielsen Media Research showed.

Real estate investor sentiment in New South Wales and the Australian Capital Territory saw the greatest turnaround, with the number of intending rental real estate investors jumping 80 per cent from 169,000 to 308,000.

Wizard Home Loans chairman Mark Bouris, whose company sponsored research, said increasing rental returns were a major factor in drawing real estate rental investors back to the property market. “Our research indicated that borrowers are responding to and attempting to capitalise on increasing reports of limited supply of rental accommodations and predictions of sharp increases in rental yields,” Bouris said. “The appeal of high returns has helped lure borrowers in real estate property to the property investment market. However, adequate supply of property will be the critical issue affecting the vitality of the market in the next 12 months.”

Bouris said the research suggested 60 per cent of those keen to buy were first-time property investors, while workers in trade and related occupations accounted for almost half of the total increase in would-be investors.

“Australians in professional occupations remain the largest group of intending real estate investors but only just,” Bouris said. “The traditional so-called ‘blue collar workers’ are poised to make ground on the stronghold professional workers once held on property investments.”

“Those in trade and related occupations are capitalising on the skill shortgage and resources boom, and they’re making savvy financial choices and attempting to invest their higher wages into long-term investments such as property,” he said.

Real estate investor demand was up in all the mainland states except for South Australia and the Northern Territory, the survey showed.

Firming real estate market tipped for 2007

The Australian property real estate market stabilised through 2006 and most states can expect a stronger performance in 2007, according to a report from LJ Hooker Financial Services. Published in the Australian Property Investor Magazine March 2007. For more info, visit www.apimagazine.com.au.

First homebuyers are returning to the real estate market and owner-occupier activity is improving, the company’s general manager, Peter Bromley, wrote in a report, which went on to detail conditions in each state.

New South Wales Real Estate

Bromley said it was “genuinely difficult” to predict NSW real estate market movements at this stage. “Big price increases are unlikely through 2007, though the top end of the market - $2 million plus properties – should continue to climb,” he said. In what could be an interesting tip for real estate investors, Bromley said some regional NSW areas may outperform Sydney, naming the centres of Newcastle and Wollongong in particular.

Victoria Property

Melbourne had an “outstanding” 2006, with the LJ Hooker/BIS Shrapnel Residential Property Index showing growth of 17.8 per cent over the year. “This remarkable level of growth also shows no signs of slowing down, with the final three months recording growth of 4.8 per cent,” wrote local real estate analyst Warren Urquhart. The metropolitan real estate market property was very strong, while the outer suburbs were somewhat slower, mostly due to buyers “being very deliberate in their decision making,” Urquhart said.

Queensland Real Estate

Growth of 4.6 per cent over the three months to December 2006 suggested three interest rate rises during the year had little impact on the Queensland residential property market, the report said. Glenn Prior of LJ Hooker Financial Services in Queensland said the Sunshine Coast market real estate was particularly active in the lead-up to Christmas and the start of 2007 fround the Gold Coast unusually busy. Real estate investors were also active in Townsville and Chinchilla, on the back of ‘planned’ commercial activity. On these, Prior warned, “Caution is needed where a property market is being driven up by speculation.”

Western Australia Property

Perth was the standout performer of 2006, with the Residential Property Index showing 34 per cent growth for the year. However, Barry Hurst of LJ Hooker Financial Services said the unrelenting rises would have an impact on first time homebuyers. “The $440,000 median house price is already out of many first homebuyers’ reach,” Hurst wrote. “Some real estate market observers are expressing concern that the possibility of concessions for first home buyers, as mooted recently by the State Government, may cause this sector of the real estate property market to go to ground. Even the suggestion of the ‘carrot’ may result in a ‘wait and see’ attitude and that would certainly have an impact on the property market at large.”

Tasmania Property

Home loan activity for established homes was growing above the national rate in Tasmania and first homebuyers activity was also above the national average, Urquhart said. Prices also climbed. The northern suburbs had strong real estate sales through November and December, Urquhart noted, and the southern suburbs should see increased activity driven by land releases this year.

South Australia Real Estate

Andrew Morrison wrote in the report that the real estate outlook in Adelaide for 2007 was “one of general optimism.” “It’s fair to say that the overall performance of the Adelaide property market in 2006 was flat but there’s every sign that 2007 will deliver better results,” Morrison said. He said low property vacancy rates were attracting Australian real estate investors back into the market in “noticeable proportions.”

Australian Capital Territory

The ACT’s market has continued to defy market observers in Australian real estate, with the Residential Property Index recording a return of 4.3 per cent for 2006. “December was strong, with good auction clearance rates and above reserve prices achieved in most instances,” Bromley said. “Real estate developments are still going strong, especially in Canberra’s inner suburbs.”

Northern Territory Real Estate

The Northern Territory experienced browth through much of 2006 but there was some decline in the final two months of the year, Morrison said. Nonetheless, the Residential Property Index of Australia Real Estate showed a rise of 10.6 per cent over the year. “Relatively low sales volumes in the second half of 2006 may have had some effect on median house prices however Darwin property real estate owners should keep the positive annual rate of growth in mind,” Morrison wrote.

Port Coogee along Western Australia’s Coastline

A master-planned waterfront community by Australand, the Port Coogee is definitely a go and has made many headlines for its ambitious real estate development plans that will be on of the biggest coastal renewal projects ever in Australia.

A new landmark is beginning along the western coast line of Australia called Port Coogee. This recreational marina and residential community will see through a nine hundred million dollar real estate development that will be phased into the building and renewal of a luxury and high-end marina, marina village community as well as a variety of different housing types and districts. The development at Port Coogee in Western Australia will be located just seconds away from Fremantle and will become the landmark of this region because of its offerings in both recreational facilities, lifestyle options as well as its truly unique and amazing waterfront location. South of Fremantle and just minutes away from Perth Australia, the Port Coogee development will be located along the shores of Cockburn Sound along the west coast of Australia. Just 18 kilometres south of Perth CBD, Port Coogee will also be just 5 km from Fremantle. A beautiful location offering master-planned designer homes and community planning, the Port Coogee is coming soon.

The offerings at Port Coogee Australia

With many people wanting waterfront and Oceanside living spaces these days in Australia, what better way to move your family or spend your retirement years along the western coast of the country just minutes outside of Perth and Fremantle. Port Coogee is a master-planned Oceanside living community that will have many boutique stores, dining restaurants (both casual and fine dining) in addition to entertainment, nightlife, sidewalk cafes, beaches, marinas and a host of different watersports that will keep everyone in your family happy and healthy. The Western Australia Port Coogee real estate development will be a waterfront neighbourhood that will be a growing place for commerce, industry and retail as well, which will allow many people to work, play and sleep in the same Port Coogee district. With plenty of boardwalks, beaches, water sports including kayaking, boating, sailing, swimming, surf skiing and other aquatic recreational sports, the Port Coogee Australia community will provide an endless amount of joy and fun for your entire family. As welll, the entire western Australia Port Coogee real estate properties just south of Perth will include many stylish homes and elegant townhouses and apartments all along the coastal and waterfront areas of the neighbourhood.

Port Coogee more in depth

According to their marketing materials online, this Western Australia marina and residential neighbourhood will provide plenty of recreation and relaxation options for everyone including things other than watersports too: like cycling, biking trails, park areas and more. In addition, for lifestyle options, the Port Coogee Australia development will also host six hundred dry land lots at the marina as well as a mix of apartments and townhouses in the village. In terms of retail and commercial opportunities at Port Coogee, there will be plenty of space for fine restaurants and cafes, retail outlets, offices and tourism related companies too. Best of all, the Port Coogee district will be sustainable long-term with very little environmental impact through its construction and use of renewable materials that are sensitive to eco-impact. Also, the social-economical impact of the region will be amazing for Western Australia and will become a focal point of the western coastline that will have 1.5 km of waterfront areas and providing many jobs for people who move here.

News, Media and Contact Information

For more details about the Port Coogee western Australia plans for the development of this waterfront area south of Perth and Fremantle, please read the latest press online at the following web site address: http://www.portcoogee.com.au/default.aspx?id=401. You will need Adobe Acrobat reader to open these documents. If you are interested in the lifestyle options, apartments, townhouses or commercial and retail opportunities at Port Coogee, please fill out the online form at Australand’s web site located here: http://www.australand.com.au/WA-Land-form/default.aspx. For the marketing brochure, please visit: http://www.portcoogee.com.au/default.aspx?id=221. This marketing piece for Port Coogee explains the following: From elegant inner city apartments, to stylish homes in master planned estates, to land choices in developing communities, Australand provides a range of distinctive residential living choices for individual needs that suit today’s lifestyle.
Generations of Australians have experienced the Australand difference in planning and purchasing their new homes and have benefited from our years of experience and dedication to delivering superior housing developments and homes. The planning that goes into an Australand master planned community ensures you will always move into an exceptional environment. Every development, in its unique way, demonstrates our dedication to providing quality living environments in sought after locations around Perth.

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