Can you imagine a region that runs along a pristine coastline but also has a gorgeous lake and a national park within in its boundaries and a booming economy and infrastructure program?
Of course, such a location is attractive to everyone – which means its property market has all the hallmarks of being a stellar investment location.
The oasis I am talking about is Northern Perth, encompassing the Wanneroo local council area, which is located a mere 12 kilometres from the city centre and stretches north.
Not only is Northern Perth seen as the fastest growing in Perth – and the fifth fastest in the nation – the median house price is about $460,000, according to the Real Estate Institute of Western Australia.
The region flows from Joondalup at its southern reaches, through Clarkson, Jindalee, Alkimos, and Yanchep to Two Rocks in the north. Handily, the Marmion Avenue weaves along the coastline to easily take you through each bustling centre.
The main commercial and residential town centres are at Wanneroo and Clarkson; however, other urban centres are planned for Alkimos, Yanchep, and Two Rocks as well.
From an investment perspective, the region has many fundamental bells and whistles that secures its future capital growth potential in my opinion.
Some of Northern Perth’s myriad of attributes include education and medical facilities at Joondalup, new amenities in Yanchep include the $57 million Yanchep Secondary School, the $7 million Yanchep Surf Life Saving Club and the $8.3 million Yanchep sporting complex, while the plan for Eglinton includes two new high schools, nine new primary schools and a district activity centre, making it perfect for families.
Market momentum in Northern Perth
Perth and Western Australia in general are certainly in the sights of savvy property investors this year.
In fact, the 2022 PIPA Annual Investor Sentiment Survey found that WA had skyrocketed up the rankings to take out second spot for the state with the best investment potential for the year ahead. Plus, Perth edged out Sydney to take out second spot for the capital city classed as having the best investment prospects as well.
Perth is certainly experiencing its most buoyant property market since the end of the resources’ investment boom in 2013 with construction and first-home buyer activity at peak levels.
Vacancy rates started to fall in 2017 and have been trending downwards ever since. This pattern is consistent across Greater Perth, however, vacancies in Wanneroo are now extremely tight with all postcodes below 0.5 per cent and some registering zero vacancy.
Having such an undersupply of rental properties is not a situation that will remedy overnight, which means that yields will continue to be solid for investors in the region for quite come time.
Likewise, with affordable buy-in prices, investors who want to make the most of the positive market conditions, are already making their moves to get ahead of the curve.
In the past 20 years, the population of Wanneroo has also grown from 80,000 to 215,000, according to ABS data. Plus, it is forecast to grow to 370,000 by 2041 – an increase of nearly 70 per cent.
There is no question that Northern Perth is changing, with more major infrastructure – either planned or under way – than you can poke a stick at!
Some of the biggest projects have been game-changing for their local economies including:
- The $240 million Metronet project extended the Joondalup train-line to Butler and was completed in 2014. The extension means it now takes only 37 minutes to reach the Perth CBD by train. This has been followed by approval for the line to be extended a further 30 kilometres further north to Yanchep, with the construction of three new train stations at Yanchep, Eglinton, and Alkimos also included in the project.
- Wangara Industrial Area is one of Perth’s busiest industrial areas with more than 10,000 people working there. Neerabup Industrial Area is an emerging industrial area but has the potential for up to 20,000 jobs to locate to the area.
- The State Government’s recently released East Wanneroo District Structure Plan is a 50-year vision to develop 50 hectares to cater for 150,000 residents. It includes an extraordinary 50,000 homes, 30 primary schools, and six high schools. Development will start in 2031. There are also several newly emerging suburbs in this LGA, which are growing fast.
While Perth isn’t for everyone, the area could well be worth considering for some investors whose risk profile it matches.