- Fifth fastest growing region in Australia
- Median Affordable Home Price
- Abundance of major infrastructures
Can you imagine a region that stretches along a pristine coastline, but also has a beautiful lake and national park within its boundaries and a booming economy and infrastructure program?
Of course, such a location is attractive to everyone, which means that its real estate market has all the characteristics of an exceptional investment location.
The oasis I am talking about is North Perth, encompassing the local council area of Wanneroo, which is located just 12 kilometers from the city center and stretches north.
Not only is North Perth considered the fastest growing in Perth – and the fifth fastest growing in the country – but the median house price is around $460,000, according to the Real Estate Institute of Western Australia (REIWA).
The region flows from Joondalup at its southern part, through Clarkson, Jindalee, Alkimos and Yanchep to Two Rocks in the north. Convenient, Marmion Avenue winds its way along the coast to take you easily through each bustling centre.
The main commercial and residential town centers are in Wanneroo and Clarkson; however, other urban centers are also planned for Alkimos, Yanchep and Two Rocks.
From an investment perspective, the region has many fundamental bells and whistles that I believe underpin its potential for future capital growth.
Some of the myriad attributes of North Perth include educational and medical facilities at Joondalup, new amenities at Yanchep include the $57 million Yanchep Secondary School, the $7 million Yanchep Surf Life Lifesaving Club and the Sports Complex Yanchep’s $8.3 million, while the plan for Eglinton includes two new high schools, nine new elementary schools and a neighborhood activity center, making it perfect for families.
Market dynamism in North Perth
Perth and Western Australia in general are certainly on the radar of savvy property investors this year.
In fact, PIPA’s 2022 Annual Investor Sentiment Survey found that WA soared in the rankings to take second place in the state with the best investment potential for the coming year. Additionally, Perth edged out Sydney to take second place in the capital ranked as also having the best investment prospects.
Perth is certainly experiencing its most buoyant real estate market since the end of the resource investment boom in 2013, with construction and home ownership activity at record levels.
Vacancy rates began to decline in 2017 and have been on a downward trend ever since. This pattern is consistent across Greater Perth, however, vacancies in Wanneroo are now extremely tight with all postcodes below 0.5% and some registering zero vacancies.
Such a shortage of rental properties is not a situation that will resolve itself overnight, which means that returns will continue to be strong for investors in the region for some time to come.
Likewise, with affordable purchase prices, investors who want to make the most of positive market conditions are already taking steps to get a head start.
Over the past 20 years, Wanneroo’s population has also grown from 80,000 to 215,000, according to ABS data. Moreover, it is expected to reach 370,000 by 2041, an increase of almost 70%.
There’s no doubt North Perth is changing, with more major infrastructure – planned or underway – than you can fathom!
Some of the biggest projects have been game changers for their local economies, including:
- The $240 million Metronet project extended the Joondalup train line to Butler and was completed in 2014. The extension means it now takes just 37 minutes to reach Perth’s CBD by train. This was followed by approval to extend the line a further 30 kilometers further north to Yanchep, with the construction of three new stations at Yanchep, Eglinton and Alkimos also included in the scheme.
- Wangara Industrial Estate is one of Perth’s busiest industrial areas with over 10,000 people working there. The Neerabup Industrial Zone is an emerging industrial zone, but it has the potential to create up to 20,000 jobs in the area.
- The East Wanneroo District Structure Plan recently released by the state government is a 50-year vision to develop 50 hectares to meet the needs of 150,000 residents. It includes an extraordinary number of 50,000 houses, 30 primary schools and six high schools. Development will begin in 2031. There are also several newly emerging suburbs in this LGA, which are growing rapidly.
Although Perth is not for everyone, the area may well be worth considering for some investors with a matching risk profile.