“This strong activity in the lower-priced suburbs will start to have a ripple impact on higher-priced suburbs during the coming year as more people in the lower-priced brackets are in a better position to upgrade.”
The southern outer suburb of Orelia is among three WA locations to make a national list of the 10 best places to invest, with its affordability, high yields and capital growth attracting eastern buyers.
Geraldton, and Withers in Bunbury, were also identified in the Hotspotting National Top 10 Positive Cashflow Hotspots report, which analysed areas that offered rental yields of at least 5 per cent as well as employment opportunities and capital growth potential.
Hotspotting director Terry Ryder said Orelia, whose median house price is $390,000, had not only produced 20 per cent annual growth but was also the second-fastest growing local government area in the state.
Ryder said investors were increasingly being attracted to Orelia, which is about 40 kilometres south of Perth city, by its affordability, it being the most affordable precinct in the metro area.
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“The region is also home to billions of dollars of new infrastructure and is forecast to create some 10,000 jobs over the next three decades,” he said.
CoreLogic’s daily Home Value Index is pointing towards further growth in housing values, with each of the five largest capitals recording a rise in values through the month to date.
CoreLogic research director Tim Lawless said Tuesday’s Reserve Bank of Australia decision to leave interest rates on hold in March came as no surprise but most economists agreed the next move on rates would be down, which would drive property prices still higher.
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