The prospects for property managers across Western Australia are on the up in 2019, thanks to improved infrastructure and the influence of southern state investors, according to the Raine & Horne network.
General manager at Raine & Horne WA Craig Abbott said that there have been some improvements in weekly rent prices in some Perth suburbs.
“We expect that more Sydney investors will note improving rental yields coupled with more affordable Perth real estate prices, and consequently be a bigger factor in our market in 2019.”
He said there is a caveat: bank lending.
“It’s really important the banks find a way to make it easier and faster for investors to get finance over the line next year to help get real estate markets.”
Mr Abbott said that 2019 will be a year of opportunity for Perth property buyers.
“The buying hotspots will be found in Perth’s western suburbs such as Claremont and moving up the coast,” he said.
“There is mounting demand for properties priced between $800,000 and $1 million. Anything above $800,000 offers good value in the western suburbs and most buyers are white-collar workers.”
Director of Raine & Horne Bunbury Alec Marra said that the outlook is promising for the City of Bunbury, the second capital city of Western Australia.
“It will benefit from the construction of the $650 million regional bypass and Albemarle’s massive new $1 billion lithium battery processing plant in the Kemerton industrial area, which will create hundreds of new jobs in WA’s southwest.
“Hundreds of new jobs will be fantastic for our market. We’ve seen time and again that major infrastructure announcements can result in above-average growth in median prices once the market absorbs the implications for real estate values.
“It’s estimated that once the plant is established, there will be around 500 workers required for its operation. This injection of workers will underpin sales and rental markets in Bunbury.”
Principal of Raine & Horne Mandurah Peter Vetten said that the transition of the city of Mandurah in 2018 along with the lithium plant near Bunbury will support capital growth and real estate activity next year.
“The lithium plant in Kemerton is on the Mandurah side of Bunbury, and we see that Mandurah will be a launching pad for many of the plant’s employees as they’ll only be 50 minutes from work and an hour from their relatives in Perth,” Mr Vetten said.
He said that the city of Mandurah also spent $17 million on a makeover of the Mandurah foreshore, while $51.8 million was spent on replacing the old timber bridge with a dual carriageway.
“We’ve also had a $350 million refurbishment of the Mandurah Forum by owner Vicinity plus a couple of our other shopping centres have received $10–$30 million upgrades.”
Mr Vetten said that the improvements to government and private sector facilities are a “clear” indication that Mandurah is seen as a viable and more affordable alternative to Perth.
He added that the median house price in Mandurah is $280,000 compared to $450,000 in Perth.
“Mandurah is just an hour from Perth, with excellent transport and freeway facilities, coupled with a fantastic lifestyle offering ample water-based activities,” Mr Vetten said.
“Retirees are identifying value in waterfront and near-water properties and that Mandurah is no longer a sleepy hollow thanks to the council and commercial makeovers.
“Given this investment and the job opportunities that will flow from the lithium processing plant, 2019 looks like being a very robust year for real estate activity and values in Mandurah.”