City of Wanneroo, Perth, leading state's market recovery

City of Wanneroo, Perth, leading state's market recovery
City of Wanneroo, Perth, leading state's market recovery

Evidence that the Perth market has bottomed, after four tough years, is growing.

A market recovery is under way and one of the locations leading the revival is the City of Wanneroo in the north of the metro area.

Strong population growth is propelling the Wanneroo LGA away from its past as a remote, bushy area towards becoming a busy seaside city destined to house 363,000 residents. Over the past decade, 177,000 new residents have moved there, making it the fastest-growing LGA in Western Australia.

Its popularity with young families is evident too. Sales numbers have been rising and this earned Wanneroo a special mention in Hotspotting’s 2017 Winter Edition of the Price Predictor Index. At a time when few Perth suburbs have rising sales activity, several locations in the City of Wanneroo are showing signs of returning to growth.

Growing industrial areas are providing employment opportunities and with houses in most suburbs priced in the $300,000s and $400,000s, the City of Wanneroo is worthy of attention by investors.

Wanneroo is a rapidly-expanding LGA on the northern fringe of the Perth metropolitan area, located about 12km from the Perth CBD at its nearest point and 62km at its furthest point.

Perth’s next major Strategic Metropolitan Centre at Yanchep is currently being developed. Until the early 2000s, much of this area was unpopulated bushland.

The LGA’s main commercial and residential town centres are located at Wanneroo and Clarkson.

Other urban centres are planned at Alkimos, Yanchep and Two Rocks, with the largest retail centre being Wanneroo Cenral.

The Wanneroo region has natural attractions, mainly the beaches, but it is also home to the Yanchep and Neerabup National Park, Yellagonga Regional Park. and Lake Joondalup.

Barbagallo Raceway is a motorsport circuit located in Pinjar. It is renowned for the annual Supercar Championships which attract around 50,000 visitors over three days.

The City of Wanneroo has come to Hotspotting’s attention because of rising sales activity in several suburbs at a time when Perth’s market generally has been weak.

Wanneroo is one of four Perth precincts that are beginning to demonstrate a turnaround in the Perth housing market. Of the four, Wanneroo is the standout location, providing growth markets such as Alkimos, Carramar, Clarkson and Yanchep.

Alkimos is a newly-emerging suburb, having had a population of only 700 at the 2011 Census. The population is now 6,000. As with Yanchep, Butler and Two Rocks, new land estates are becoming available at Alkimos.

Based on 105 sales in the past year, the median house price at Alkimos is $400,000, with a median yield of 4.7%. Clarkson is the busiest suburb in the Wanneroo LGA with 227 annual sales. It has a median house price of $406,000 and a median rental yield of 4.5%.

Generally, young families dominate the region, searching for affordability amid the new development. Houses priced under $400,000 can be found in Banksia Grove, Girrawheen, Merriwa and Yanchep.

The State Government’s LandCorp and the Satterley Property Group are creating a new beach suburb between Yanchep and Alkimos. The 240ha community, to be known as Allara, has the potential to accommodate 3,400 home sites and a population of 7,500 people in the next 10 years.

Building projections obtained from the City of Wanneroo show that between 2011 and 2036, the suburb of Butler will have 2,800 dwellings added; Clarkson 2,400; Alkimos 11,000, Jindalee 3,200 and Yanchep 8,800.

Investors need to be mindful that vacancy rates are an issue, as is the case right across Perth. I expect this to improve as the WA economy and the Perth property market continue their fightback.

Terry Ryder is the founder of hotspotting.com.au. You can email him or follow him on Twitter.

Terry Ryder

Terry Ryder

Terry Ryder is the founder of hotspotting.com.au.

Tags: 
Property market Perth Recovery

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