Friday, June 6, 2014

Cheapest, Closest Suburbs to the City

There was an article on Perthnow yesterday about how the suburbs 15-30km from the Perth city centre will be the top performers in the next 12 months. What was interesting was how they narrowed down a couple of suburbs that seem to be relatively cheaper than suburbs around the same distance from the city.
  1. Within 5km Glendalough was the cheapest suburb within 5km of the city. The median house price there is $607,000. The median house price for houses within 5km of the city is $897,840. 
  2. Within 15km Only three suburbs have a median house price of less than $400,000 and is within 15km of the city. They are Lockridge ($372,000), Girrawheen ($390,000) and Koondoola ($397,000). Average price of suburbs that are from 5km-15km of the city is $777,883. 
  3. Within 30km 13 suburbs in the zone with median house sales prices of less than $400,000: Brookdale ($309,750), Camillo ($312,000),Armadale ($315,000), Midvale ($350,000), Bellevue ($352,000), Koongamia ($352,000), Stratton ($357,250), Kelmscott ($360,000),Maddington ($360,000), Gosnells ($365,000), Middle Swan ($380,000),Seville Grove ($380,000) and Midland ($395,000). Otherwise, the median house price for suburbs in this area is $583,899. 
While distance is not the only factor, this helps some homebuyers who work in the city to make a decision about how far out they are willing to go in order to find a home they want. Crime is also a very big factor for many people with some suburbs notorious for their crime. This would also affect the median prices of some suburbs listed above. 

With the new stamp duty threshold sitting at $430,000, I would think that many of these suburbs will experience a growth in house prices in the coming month. 

Tuesday, June 3, 2014

Interest Rates Steady as House Prices Fall

Perth houses have recorded their fifth straight month of declining prices since the start of the year with dwellings dropping 0.8% in May. Compared to last year, house prices are still up 5.7% but Perth is the only capital city to experience negative growth in 2014.  The median house price is now at $525,000.

Today also comes the news that interest rates will be held steady by the Reserve Bank of Australia but expectations are that interest rates will start to rise by the end of the year. Given the new stamp duty threshhold of $430,000, one would guess that the median house price will probably track backwards in June as well, with the bargaining power shifting back to the buyer with sellers looking to close their sales bu 30 June when the $500,000 stamp duty exemption ends.

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