A tale of suburb rejuvenation

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So we have been watching with some interest, changes to certain precincts such as The Springs, which are transforming from typically industrial areas into stylish and enviable pockets of real estate.

We thought to ourselves – where else have we witnessed this kind of rejuvenation and what can we expect over time? So we decided to examine Claisebrook, since its rebirth in the 1990’s.

We delved into 20 years of sales results for the East Perth precinct overall and discovered some very interesting facts!

Now some people would think that we are simply barmy at looking at such a long period of time – but we love to crunch numbers at PropertyESP and make sense of property trends.

So we broke the data into several precincts including Claisebrook, East Perth, Riverside, Langley Park and the Wellington Square precinct.

Not only did we look at sales prices and capital growth over this 20 year period, but also the changing demographics of the residents plus property design trends ie number of bedrooms etc.

We saw some interesting data for this time frame and will report on them over the course of the next few weeks.

What was most interesting however, we thought, was the timeframe for capital growth.

Typically in the East Perth area, the best time to maximise capital gains was in the first year of purchase and then not again until year 8. No denying these properties posted capital growth of 13% per annum at the peak, but between years 2-7 the capital growth dipped from 12%/annum to 6%.

Typically the cycle worked in 5 year intervals.

Between sales, properties in Claisebrook experienced the better growth rate (8% for apartment houses/annum, flats 16%) with East Perth demonstrating 16% for flats and Riverside 11% for units.

There is no doubt that this area therefore did benefit from converting from an old industrial site into a modern residential village.

We wonder therefore if we will see similar results for other locations and that can only be beneficial for those early birds who recognise a good investment!

If you would like PropertyESP to present the results from the East Perth sales analysis to your team, give Sam a call today – we are happy to do so at no charge!

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