Raine & Horne has opened two new offices in Perth, with the group predicting the city’s property prices will rise by up to five per cent in 2012.
“The mining industry in WA will continue to go from strength to strength, while unemployment in the state is now under 4.5 per cent,” Angus Raine, CEO of Raine & Horne, said.
“We’re establishing offices in [the Perth suburbs of] Kenwick and Kelmscott as they offer excellent housing affordability, and if the Reserve Bank cuts rates in coming months as predicted, we expect first home buyers and investors to go head to head in these suburbs in the early months of 2012.”
Stephen Arscott, co-principal of Raine & Horne Kenwick, said affordability would drive local buyer demand, but he added Kenwick’s proximity to the Perth CBD ensured its long-term appeal with first home buyers.
“Kenwick is just 16 kilometres from the city and is well served with rail and road transport,” says Mr Arscott.
On the issue of affordability, Mr Arscott said a 30-year old, three bedroom, one bathroom home is available for $270,000, while near-to-new three bedroom, two bathroom houses are available from $350,000.
“Kenwick is [also] very popular with tenants, and as a consequence it’s been a keen pocket of interest for investors,” says Mr Arscott, who confirms landlords can expect to return in excess of 5 per cent gross yields.
Will Trainer, principal of Raine & Horne NRAS, said property values in Kelmscott, which is located in the City of Armadale local government area, are set to rise based on infrastructure investment over the last ten years.
Some of the major developments include transport upgrades such as Armadale Road, the completion of the Tonkin Highway, the Wungong Urban Development, the International Rowing Course at Champion Lakes and Forrestdale East Business Park.
“Additionally, Armadale’s initiative in rezoning large parcels of land shouldering the railway lines and the city centre has further encouraged large scale investment and development such as the expansion of the Armadale Shopping City, upgrades to the Kelmscott Shopping Centre and a six cinema multiplex,” he said.
Mr Trainer’s office will also market homes involved in the National Rental Affordability Scheme (NRAS).