The Springs is ready to boom!

I attended an interesting breakfast the other day, hosted by the Property Council and which outlined what is happening at The Springs in Rivervale.

This is a 14ha parcel of land nestled between Polly Farmer Fwy and Great Eastern Hwy and of course central to the new stadium, Crown Casino, Swan River and trainline into the city.

There are a number of developers in this precinct, which is being project managed by LandCorp, including Finbar, BGC, Psaros and Hillam.

While the majority of The Springs is residential (1900 apartments), there will also be 10,000sqm of commercial space, plus the first Sheraton Aloft hotel for WA.

The Aloft hotel will offer amenities for local residents to use as well as guests and will feature a rooftop bar as well as XYZ bar. This venue has attitude and will boast live music and tech forward thinking. Very exciting indeed!

At present there is $389 million of apartments being constructed with most being available for occupation mid 2016.

To date 36% of buyers have been investors and 64% owner/occupier.

Plus these buyers are coming from a range of areas including Como, East Perth, Rivervale, Ascot, South Perth, Southern River, Canning Vale, Thornlie, Victoria Park and Nollamara.

The breakdown of buyer ages is also just as varied:

springs graph 1

As can be seen by far, the 26-35 age group represents the biggest portion with 35% of buyers and it is not surprising considering the setting and the price advantage!

At the end of the day we believe that The Springs will in fact be the next East Perth and it is one of my hottest investment tips for Perth!

PropertyESP will be doing some further analysis work on The Springs precinct in the near future – so stay posted!

 

 

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Bunbury ready to grow

I attended a breakfast briefing last week with the City of Bunbury Mayor Gary Brennan and CEO Andrew Brien.

The Mayor predicted that there would be cranes in the Bunbury skyline within 12 months and he has good reason to feel optimistic.

The CBD of Bunbury is undergoing a retail renovation with several major precincts including Bunbury Forum, Minninup Forum, Plaza Shopping Centre and Stirling/Centrepoint undertaking significant expansion plans.

It was also particularly pleasing to see the City’s focus on connecting the Centrepoint Shopping Centre to the foreshore and while it will impact on the flow of traffic, it will also allow the City to be truly connected to its waterways.

In addition a Brisbane syndicate have purchased one of the 5 Koombana North land parcels in order to construct a six storey residential development which also encompasses a level of retail and commercial. This will add to the existing Marlston waterfront and is long overdue!

The City also has over 100 land parcels which they are currently rationalising and on that basis the CEO is attending Eastern States conferences with a prospectus of available parcels which are now for sale. It is obvious that the City is keen to get the ball rolling and build on its existing strengths.

Economically the City of Bunbury has a high ratio of residents that own their own home outright and commercial investment is strong ($120 million in sales in 2013/2014).

As such, as the Mayor stated, we just need to lift the market’s confidence and this wave of investment will undoubtedly have a positive knock-on effect.

If you are interested in viewing the City’s prospectus please contact me at info@propertyesp.com.au. It is an interesting read!20150415_085301-1

When to be cautious of mean and median

After much speculation that the Western Suburbs prices are on a downward trend, property consultancy firm PropertyESP has undertaken a detailed analysis of Mosman Park, Cottesloe, Applecross, Peppermint Grove and Dalkeith to see the true story behind the sales.

The company has found that over a two year period (January 2012 to September 2014), the suburb of Mosman Park had several peaks and troughs, including a price spike in September 2013 quarter of 27% and another in January – June 2014 of 32% (14% + 18% respectively). In contrast the area experienced a median price decline in the December 2013 quarter of 32%.

Median house prices Mosman Park January 2012 - September 2014
Median house prices Mosman Park January 2012 – September 2014

But as Samantha Reece, Director of PropertyESP states, this was because of the types of houses that were available for sale and not the ongoing trend.

“The median price in June 2013 was $1.4 million and this increased to $1.7 million in September because there were more four bedroom houses (65%) sold in this latter quarter and the average block size also increased from 595sqm to 746sqm,” Ms Reece said.

june quarter

“In contrast the 32% decrease we saw in the December 2013 quarter was due to the average block size sold decreasing from 746sqm to 527sqm and 55% of the houses sold were 1-3 bedrooms.

“This is why it is essential that property buyers don’t just look at median and mean as an indicator of a suburb, but rather the data behind the numbers.

“Furthermore, when you don’t have a high volume of sales, and in Mosman Park’s case, an average of 34 sales per quarter, then median house prices can fluctuate widely from one quarter to the next.”

PropertyESP is a newly formed company that seeks to drill down into the figures and provide the why for property movements.

“From the recent news, buyers would assume that the Western Suburbs is in fact depreciating in value but when you have such a wide variation of property types and a small number of sales, you really need to look at the individual sales, the quality of the homes and even the views to work out what is truly happening,” Ms Reece said.

“We have formed PropertyESP because we want to provide the full picture and give buyers accurate data and so that their decisions are more thought through.”

The company will be providing free regular blog posts about these kinds of insights and property buyers can register at www.propertyesp.com.au.

“At the end of the day there is so much information about property and we just want to provide the data, that helps make sense of it all,” Ms Reece said.