Wednesday, March 21, 2012

Best 50 Perth Suburbs for Next 12 Months

Smart Investor magazine's April issue came up with an article featuring what they consider to be the Top 601 suburbs around Australia. For WA, they had a list of 100 suburbs to watch. I took the list and sorted it by the 12-month forecast, then by the Gross Rental Yield to come up with a top 50 suburbs list below. If you would like to see their statistics, I suggest you buy the April edition of SmartInvestor.

When you look at the list, it is important to note that some of these "suburbs" are not in the metropolitan area such as South Hedland which, if you can see from this map, is a little out of town from Perth. West Perth (units and houses), Willetton, Thornlie, Canning Vale, and Bassendean were the highest "real" Perth suburbs amongst the nine suburbs that they predict will have a 12 month growth of five or more percent in WA.



Suburb Number sold 2011 Median Price YoY % 3-yr % 12-month forecast Median rent Gross rental yield %
South Hedland 219 $750,000 7.9 13.7 5+ $1,700 snr
West Perth Units  56 $405,000 9.5 7.6 5+ $478 5.6
Willetton 199 $575,000 0.7 3.9 5+ $400 3.9
Thornlie 335 $390,000 -1.3 2.4 5+ $390 5.1
Canning Vale 490 $525,000 -1.9 2.3 5+ $450 4.7
Bassendean 167 $448,500 -0.3 2.2 5+ $380 4.3
Port Kennedy 239 $380,000 -0.5 1.1 5+ $350 4.7
West Perth 155 $565,000 2.7 0.9 5+ $515 5.0
Boulder 119 $263,000 -1.7 -0.9 5+ $320 6.6
Cable Beach 64 $722,000 -1.1 5.5 5 $750 4.8
Maida Vale 64 $488,500 -0.3 4.4 5 $420 4.6
Duncraig 204 $633,000 -2.6 2.8 5 $500 4.3
Alexander Hts 85 $432,000 0.3 2.6 5 $405 5.1
High Wycombe 191 $397,000 -3.2 1.2 5 $400 5.0
Seville Grove 177 $339,000 -3.1 0.9 5 $360 5.6
Mindarie 113 $660,000 0.4 0.8 5 $550 4.5
Ballajura 242 $395,000 -2.9 0.4 5 $400 5.1
Armadale 191 $280,000 -3.3 0.3 5 $300 5.3
Harrisdale 82 $542,500 0.0 -2.3 5 $470 snr
Perth 71 $357,000 -0.8 -2.7 5 $490 5.0
St James 89 $480,000 -2.8 5.1 4 $380 3.9
Rockingham 305 $370,000 -2.6 5.0 4 $345 4.6
Erskine 51 $460,000 9.0 5.0 4 $310 4.0
Bulgatra 62 $747,500 4.3 3.7 4 $1,500 snr
Bull Creek 82 $636,000 0.2 3.7 4 $450 4.0
Maylands 228 $487,000 -2.6 3.4 4 $425 4.5
Kardinya 124 $585,000 0.8 3.0 4 $430 3.8
Bedford 80 $585,000 -3.7 3.0 4 $380 3.0
Hilton * 62 $502,500 3.6 2.3 4 $395 snr
Craigie 124 $407,000 -3.7 2.3 4 $360 4.7
Mt Hawthorn 103 $800,000 0.1 2.3 4 $495 3.4
Hamilton Hill 158 $449,750 -3.3 2.1 4 $380 4.2
Kingsley 149 $537,500 -2.1 2.1 4 $450 4.0
Southern Rvr 127 $525,000 -3.0 2.0 4 $450 4.5
Beldon 65 $430,000 -3.4 2.0 4 $350 4.4
Beechboro 130 $377,250 -2.0 1.6 4 $370 4.9
Atwell 155 $497,000 -2.5 1.5 4 $430 4.6
Connolly 67 $610,000 -3.7 1.3 4 snr snr
Cloverdale 149 $425,000 -1.4 1.2 4 $395 4.8
Bentley 125 $420,000 -3.6 1.2 4 $383 4.5
South Lake 98 $386,000 -3.5 1.1 4 $380 4.7
Huntingdale 145 $381,000 -2.3 1.0 4 $370 5.0
Kalgoorlie 155 $312,000 11.6 0.8 4 $370 6.6
Meadow Springs 128 $399,000 -1.5 0.8 4 $350 4.7
Mullaloo 79 $655,000 1.6 0.8 4 $500 4.0
Gosnells 294 $315,250 -3.0 0.6 4 $330 5.2
Ocean Reef 89 $710,000 0.7 0.6 4 $590 3.9
Joondalup 185 $445,000 0.0 0.2 4 $390 4.3
Edgewater 83 $480,000 -2.4 0.2 4 $400 4.1
Dudley Park 106 $405,000 0.3 -0.3 4 $330 4.3








The next 50 suburbs were Cooloongup, Kallaroo, Hannans, Somerville, Coodanup, Victoria Park, Manning, Queens Park, Victoria Park, Cannington, Palmyra, Wattle Grove, Wanneroo, Osborne Pane, Lynwood, Currambine, East Cannington, Rivervale, Beckenham, Waikiki, Northam, The Vines, Madeley, Eaton, Hocking, Maddington, Yanchep, Wambro, Bertram, Australind, Swan View, East Bunbury, Kalamunda, East Perth, lluka, Sorrento, Beaconsfield, Mosman Park, Nth Fremantle, Morley, Embleton, Nollamara, Karrinyup, Applecross, Claremont, Balcatta, Banksia Grove, East Victoria Pk, Stirling, City Beach.

Wednesday, March 14, 2012

Perth Best Suburbs 2011

What are the top 20 suburbs that first homebuyers were buying into WA in the last six months of 2011? Many first homebuyers may have started out with grand ideas where they would like to live but this table obtained from the Real Estate Institute of WA gives you some idea where first homebuyers eventually bought a house. It gives a good indication which suburbs will heat up once more confidence returns in this segment of the market and if you are a first homebuyer, this may be a realistic place to start looking for a home in Perth.

Top 20 Suburbs/Locations        Total
1 BALDIVIS 201
2 ELLENBROOK 137
3 BANKSIA GROVE 119
4 BUTLER 118
5 CANNING VALE 111
6 PIARA WATERS 108
7 SOUTHERN RIVER 99
8 BYFORD 97
9 BERTRAM 87
10 GOSNELLS 84
11 MAYLANDS 78
12 WATTLE GROVE 73
13 AVELEY / PERTH 72
14 THORNLIE 71
15 HARRISDALE 65
16 AUSTRALIND 64
17 SEVILLE GROVE 62
18 SCARBOROUGH / SECRET HARBOUR / KALGOORLIE 61
19 HAMMOND PARK / LANDSDALE / NOLLAMARA 60
20 MORLEY 59


Friday, March 9, 2012

Which Bank Didn't Follow RBA this time?

Although the RBA chose to keep the cash rate steady at 4.25%, many of the banks are increasing their fixed interest rates. ANZ will be raising their 3 year fixed rate by 20 basis points from 6.14% to 6.34%.

Suncorp also raised its 2 year fixed rate by 16 points to 6.14%. The only bank to have increased their variable rate since the RBA's announcement on Tuesday was the Bank of Queensland which moved their variable home loan rate up 10 points to 7.46% claiming rising funding costs.

I wonder how many people last month jumped to the Bank of Queensland when they decided NOT to raise rates, only to see them going up this month?

Tuesday, March 6, 2012

RBA Leave Interest Rate Unchanged 4.25%


Statement by Glenn Stevens, Governor: Monetary Policy Decision

At its meeting today, the Board decided to leave the cash rate unchanged at 4.25 per cent.
Recent information is consistent with the expectation that the world economy will grow at a below-trend pace this year, but does not suggest that a deep downturn is occurring. Several European countries will record very weak outcomes, but the US economy is continuing a moderate expansion. Growth in China has moderated as was intended, but on most indicators remains quite robust overall. Conditions around other parts of Asia softened in 2011, partly due to natural disasters, but are not showing signs of further deterioration. Some moderation in inflation has allowed policymakers in the region to ease monetary policies somewhat. Commodity prices declined for some months and are noticeably off their peaks, but over the past couple of months have risen somewhat and remain at quite high levels.
The acute financial pressures on banks in Europe have been alleviated considerably by the actions of policymakers, though there is more to do to put European banks and sovereigns onto a sound footing for the longer term and Europe will remain a potential source of shocks for some time yet. Financial market sentiment has continued to improve in recent weeks and capital markets are again supplying funding to corporations and well-rated banks, albeit at costs that are higher, relative to benchmark rates, than in mid 2011.
Most information on the Australian economy continues to suggest growth close to trend overall, with differences between sectors and considerable structural change. Labour market conditions softened during 2011 and the unemployment rate increased slightly in mid year, though it has been steady over recent months. CPI inflation has declined as expected and will fall further over the next quarter or two. In underlying terms, inflation is around2½ per cent. Over the coming one to two years, and abstracting from the effects of the carbon price, the Bank expects inflation to be in the 2–3 per cent range. This forecast embodies an expectation that productivity growth will improve somewhat as a result of the structural change occurring in the economy.
Interest rates for borrowers have generally risen slightly since the Board's previous meeting, but remain close to their medium-term average. Credit growth remains modest. Housing prices have shown some sign of stabilising recently, after having declined for most of 2011, but generally the housing market remains soft. The exchange rate has risen over recent months, even though the terms of trade have declined.
With growth expected to be close to trend and inflation close to target, the Board judged that the setting of monetary policy remained appropriate for the moment. Should demand conditions weaken materially, the inflation outlook would provide scope for easier monetary policy. The Board will continue to monitor information on economic and financial conditions and adjust the cash rate as necessary to foster sustainable growth and low inflation.

Sunday, March 4, 2012

Long Weekend House Hunting?

You may have ended up here from Google as you are looking for a home in Perth during this long weekend. Here are the recent statistics on the housing market released by REIWA last week. It shows that property sales last week were up from the previous week. From four weeks ago, there was a 21% increase in the number of dwellings sold and compared to the same time this year, we are about 40% better off. 

North of the river, the top suburbs with SOLD stickers last week were Perth, Morley, Scarborough, Bassendean and East Perth. Meanwhile south of the river, Baldivis, Canning Vale, Secret Harbour, Gosnells and Como were the top suburbs. 
Just out of interest, I decided to also post up the previous week's statistics as well below.
This showed a massive number of properties sold in one week in Highgate with 29 properties sold and Canning Vale and Gosnells appearing again. So, where are you aiming at and why?

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