The Australian Property Market Overview

Australian property values have demonstrated exceptional resilience to the global financial crisis with overall property values falling by only 3.8 per cent from peak to trough in 2008. By comparison, US house prices fell by almost 24 per cent, the benchmark ASX All Ordinaries Index halved in value and Australian Listed Property Trusts (LPTs) declined by 55 per cent.

The key driver of the modest tapering in Australian house prices was the rise in mortgage rates from 8 per cent in July 2007 to a peak of 9.6 per cent in mid-2008, a trend which was rapidly reversed by the RBA. The average standard variable mortgage rate bottomed at 5.75 per cent and the RBA has recently embarked on an interest rate tightening cycle. This means variable mortgage rates will likely return to a “neutral” setting of between 7.0 to 7.5 per cent by mid 2010 thanks to improving domestic economic conditions.

While at the macro level Australian property values have proven to be resilient, between each of the mainland capitals the performance of the market has ranged considerably.

All capital cities across Australia have recorded improvements in housing values.

Darwin stands out as having provided both the highest capital growth and strongest rental yields. Darwin houses increased in value by 11.5 percent and unit values increased by 22.4 percent over the first nine months of 2009. Despite such strong capital growth, growth in Darwin rental rates have kept pace with capital growth resulting in the highest rental yields of any capital city. Darwin houses are returning a median gross yield of 5.9 percent and gross yields for units are averaging 6.2 percent.

The other top performing cities in 2009 have been Melbourne where house values have increased 12.6 percent over the first nine months of 2009 and Sydney where house values are up 9.4 percent over the same time frame.

The median values of houses and units for each Australian mainland capital city of Australia are shown in the table below. Australia’s largest and most populous city, Sydney, has the most expensive housing prices, while the capital of South Australia, Adelaide, has the most affordable housing costs.

	Houses	Units
Sydney	$606,804	$457,274
Melbourne	$499,794	$398,440
Brisbane	$460,308	$341,584
Adelaide	$424,793	$355,222
Perth	$488,623	$458,450
Darwin	$522,130	$388,064
Canberra	$519,290	$405,240
Hobart	$331,004	$255,893
National	$515,366	$419,852

Capital city hot spot picks

The markets that are most likely to record capital growth are those where these “drivers” will be most apparent: suburbs within regions where population growth is strong, housing supply is constrained, transport infrastructure provides efficient commuting options and social and retail infrastructure is conveniently located.

The markets that are most likely to languish will be those that offer a poor value offering and are located away from the “drivers” outlined above.

This year’s RP Data “Hotspot” selections focus on both houses and units and reflect the themes outlined above. The selections are based on “strategic affordability” ñ those suburbs that represent good value for money and are also strategically located along transport spines and within close proximity to necessities such as working nodes, shopping, schools and social options.

Sydney

Granville – is located within the Parramatta Local Government Area (LGA), approximately 18.5 kilometres from the Sydney CBD. Granville is currently one of the most affordable suburbs in which to purchase a house within a 20 kilometre radius of the Sydney CBD. The median house price within Granville currently sits at $350,000 and during the past year prices have increased by 1.2 per cent. On average houses are currently being discounted by 7.9 per cent from their initial list price and those owners who sold their property during the past year had owned the property for an average of 8.1 years. Significant retail amenity is found close to Granville with a Westfield Shopping Centre nearby in Parramatta and a major home wares centre in nearby Auburn. Granville has some restaurants located within the suburb whilst many more are found nearby in Parramatta and Harris Park. The suburb is also positioned just minutes away from one of Sydney’s largest office precincts at Parramatta. Granville is very well serviced by transport amenity thanks to the train station located within the suburb which is a stop on the South, Western and Blue Mountains lines. By private vehicle, access to the suburb is very efficient via the Western Motorway and Parramatta Road.

Rockdale – is situated in the Rockdale LGA, approximately 12 kilometres south of the Sydney CBD. Rockdale is currently one of the most affordable suburbs within its local area, with most surrounding suburbs being significantly more expensive. The median house price within the suburb is recorded at $500,000. During the past year prices have fallen by -4.8 per cent. On average, houses are currently seeing moderate levels of vendor discounting from their initial list price (6.3 per cent) and those vendors that have sold their property in the past year had owned property for an average of 8.3 years. Rockdale is home to three supermarkets whilst the suburb also has its own shopping centre ñ Rockdale Plaza – which has a number of major and approximately 50 specialty stores. Rockdale also has an abundance of restaurants and cafes which cater to most tastes and requirements. Meanwhile, close by is Hurstville which is a major administrative hub of the local area and includes hospitals, major retail amenity and commercial businesses. Rockdale has its own train station which is located on the Illawarra train line. By private car, access to the suburb is also very good thanks to the Princes Highway which runs through the suburb as do a number of other major access roads. The suburb also has a major bus interchange with services running to a number of nearby suburbs and as far north as Bondi Junction.

Lidcombe – sits within the Auburn LGA and is approximately 14 kilometres west of the Sydney CBD. The suburb represents very good value when compared to median house prices within the surrounding area. The median house price is recorded at $480,000 and the last 12 months has seen the median price fall by -3.6 per cent over the period. The average house is currently recording moderate levels of vendor discounting recorded at -7.7 per cent from the initial list price. Those vendors which sold their house during the last year had owned their home for an average of 10.1 years prior to selling. The closest local retail amenity including supermarkets is found in the adjacent suburb, Auburn where there is a neighbourhood shopping centre.

Nearby to the suburb, the DFO is located within Homebush and major retail is also available at nearby Strathfield and Burwood. Within the suburb there are a number of industries which provide ample employment opportunity and there is a growing office precinct within Sydney Olympic Park. The suburb also has a significant supply of restaurants. The suburb benefits from its own train station which affords quality public transport amenity with the station being the junction for six different rail lines. A number of buses also service the suburb. Lidcombe is also adjacent to the Western Motorway which affords additional quality private vehicle access to the suburb.

Riverwood – is located within the Hurstville and Canterbury LGA’s and sits approximately 17 kilometres south-west of the Sydney CBD. The suburb lies adjacent to Salt Pan Creek and when compared to those surrounding suburbs, Riverwood’s median house price of $465,000 represents very good value. Over the past 12 months the median house price has increased by 1.1 per cent, and on average, those houses which were listed for sale during the past year have recorded a discount from their initial list price of 7.3 per cent. Of the 104 houses which were sold during the past year, vendors had, on average, owned these properties for 7.8 years.

Riverwood is home to two supermarkets and also has its own local shopping centre, Riverwood Plaza. The suburb is close to major retail facilities within nearby Hurstville which is a local administrative centre with offices and a large shopping centre. Riverwood has a number of restaurants which are largely Asian cuisine and representative of the local community. A substantial supply of restaurants are found nearby in Hurstville. Riverwood has its own train station which provides access to the Airport and the CBD. By private car, access to the suburb is also very good thanks to the South Western Motorway which runs through the suburb and has an on-ramp at Belmore Road.

Waterloo – is located in the inner city area of Sydney just five kilometres from the CBD, the suburb is actually located in the Sydney City LGA. Waterloo has one of inner city Sydney’s most affordable median house prices and, although most nearby areas are dominated by units, median house prices are much lower than nearby comparable prices. Waterloo’s median house price sits at $570,000 and prices have increased by just 9.6 per cent during the past year. The suburb’s housing market is quite small with just 15 sales last year and a total of 615 houses.

Waterloo has a number of local supermarkets providing convenience retail for locals. The Green Square redevelopment has commenced in the neighbouring suburb Zetland and, upon completion, the local area including Waterloo will reap the benefits of the retail, commercial, social and entertainment facilities in this area. The closest major retail facilities at the moment are found in the CBD whilst there are some strip retailers found nearby in Surry Hills. The inner city location is of significant benefit and adds to the appeal of the suburb. Although Waterloo doesn’t have its own train station, just to the south-west of the suburb is Green Square Station which provides rail linkages to the CBD and Sydney Airport. By private vehicle, the suburb enjoys high quality road connectivity with the CBD and the airport, largely via the Eastern Distributor.

    

Melbourne

Brunswick – is located approximately six kilometres north of the Melbourne CBD. Situated within the Moreland LGA, Brunswick shows strong affordability given its location, median prices of surrounding suburbs and prices of properties a similar distance east and south of the CBD. Brunswick’s median house price is recorded at $540,000 and the past year has seen median prices fall by -3.4 per cent. On average, houses are currently being discounted by 4.3 per cent from their first advertised sale price and, on average, vendors over the past 12 months had owned their property for 10.3 years. The local area has a number of supermarkets: both independent and large retail chains. Whilst the local area doesn’t have a major shopping centre, strip retail is found right along Sydney Road and nearby Lygon Street whilst major facilities are found in nearby Northcote and Moonee Ponds. There is a huge supply of restaurants, bars and cafes found along Sydney Road. Brunswick enjoys excellent transport amenity with three train stations (Jewell, Brunswick and Anstey) located in the suburb. The suburb is also serviced by trams which run along Sydney Road and nearby Lygon Street. Private vehicle, access is also very good via Sydney Road and a number of other connecting roads, as well as being in close proximity to the Citilink.

Ashburton – is situated approximately 12 kilometres south-east of the Melbourne CBD. The suburb is located within the Boroondarra LGA and is much more affordable than surrounding suburbs with a current median house price of $706,750 also, whilst it enjoys an equivalent if not better location and amenity than many nearby suburbs. During the past 12 months median house prices have fallen by a significant -16.9 per cent making the suburb much more affordable. On average, houses which have sold over the past year have been discounted by 7.4 per cent from their initial listing price and vendors have owned their property for 11.7 years. Ashburton has its own convenience supermarket facilities situated in the suburb. Major retail facilities are found very close by in Malvern East, with the suburb home to one of Melbourne’s largest shopping centres (Chadstone). There are a handful of restaurants found within Ashburton whilst additional supply is found in the neighbouring suburbs of Ashwood and Glen Iris. The transport amenity within Ashburton is very good with the suburb home to two train stations (Alamein and Ashburton), with these being the first two stops on the line to the city. The suburb also has a number of bus services which provide amenity to many surrounding areas and the CBD. By private vehicle, the suburb enjoys good access thanks to the nearby Monash Freeway with an on-ramp situated just minutes from the suburb.

Chadstone – is located approximately 14 kilometres south-east of the Melbourne CBD and is situated in the Monash LGA. Chadstone’s median house price is recorded at an affordable $553,000 which is significantly more affordable than most surrounding areas and in some instances, more than $100,000 more affordable. Over the past year the median house price has increased slightly by 0.5 per cent. The average house sale during the past year had been owned by the previous owners for 9.9 years. Chadstone was home to one of Melbourne’s largest shopping centres, however, rezoning over the years has seen the shopping centre now located within Malvern East. Still, it is very close to the suburb and it has a huge range of retail facilities. The local area also has the benefit of a number of restaurants situated along Warrigal Highway with significant additional supply scattered throughout the surrounding suburbs. Public transport provision within Chadstone is very good thanks to the Holmesglen rail station located on Chadstone’s border. A number of major roads and freeways including Monash Freeway, Waverley Road, Dandenong Road and the Warrigal Highway provide excellent access to

the suburb.

Flemington – is located approximately four and a half kilometres north-west of the Melbourne CBD. The suburb is well known as the home of Flemington Racecourse and the Melbourne Cup and enjoys close proximity to the Melbourne CBD. The median house price within Flemington has fallen by -5.7 per cent during the past 12 months with median prices now recorded at $537,500. The average house which sold during the past year has seen the property owned by the vendor for an average of 10.7 years, over which time they have seen a significant increase in their properties value. Flemington has a couple of independent supermarkets situated on Racecourse Road. The closest major retail centres are located in the Melbourne CBD or within Moonee Ponds at the Moonee Ponds Central Shopping Centre. Racecourse Road within Flemington has an abundance of restaurants with cuisine from many nationalities as well as being home to a number of bars and clubs, adding to the appeal of the area. Flemington has its own train stations (Newmarket and Flemington Bridge) whilst the race track has two stations which operate when major events are being held. Buses also service the suburb and trams run along Racecourse Road, Epsom Road and Union Road affording direct access to the Melbourne CBD. The suburb is also very close to the Citilink.

Fawkner – is a Melbourne suburb which is located approximately 12 kilometres north of the CBD. Fawkner is situated within the Moreland LGA and the current median price of a house, which sits at $335,800, represents a very affordable median price compared with surrounding suburbs and those suburbs a similar distance south or east of the city. Over the past year median house prices in the suburb have fallen by -1.4 per cent, and of these properties which transacted, the level of vendor discounting has been quite moderate with vendors on average discounting from the initial listing price by just 4.1 per cent. Fawkner has local convenience retailers located within the suburb. The closest major retail facilities are located relatively close by in Essendon, Tullamarine or Preston. The suburb is home to a number of restaurants along Sydney Street whilst significantly more restaurants are found in the nearby suburbs of Coburg and Preston. Fawkner enjoys quality rail amenity with its own train station and another located within walking distance, just outside of the suburb. A number of buses also service the suburb affording additional amenity. By private vehicle, the suburb is just minutes from the Western Ring Road which provides a linkage to many of Melbourne’s Freeways and excellent access to the CBD.

Brisbane

Margate – is located on the Redcliffe Peninsula approximately 26 kilometres north of the Brisbane CBD. The suburb sits within the newly formed Moreton Bay Regional LGA and, in comparison to suburbs a similar distance from the CBD without the proximity to water, prices are much more affordable. The current median house price is recorded at $348,750 and over the past 12 months the median price has fallen by -3.0 per cent. Houses which have sold in the past 12 months have witnessed an average discount level of 7.2 per cent and those vendors which have sold have owned their house for an average of 6.2 years. Margate has its own local convenience retail including supermarkets, butchers, bakers etc. Major retail amenity is found within the neighbouring suburb Kippa-Ring, where Peninsula Fair has all the major retailers required. Margate has a number of restaurants and cafes as does neighbouring Redcliffe which affords ample supply of dining amenity. Local transport amenity is dominated by buses which afford access across the Redcliffe Peninsula as well as providing linkages to nearby train stations at Shorncliffe which enjoy direct access to the Brisbane CBD. By private vehicle, the Redcliffe Peninsula enjoys quality transport access via the Houghton Highway bridge (which is currently being duplicated), whilst the Bruce Highway is also in relative close proximity.

Keperra – is situated approximately 10 kilometres north-west of the Brisbane CBD. The suburb is a long established residential area and, whilst it is located within the Brisbane LGA, it borders the Moreton Bay Regional Council. The suburb enjoys an abundance of greenery due to it being surrounded by a number of hills and mountains. The current median house price within Keperra sits at $405,000 and the past 12 months has seen median prices fall by 0.7 per cent. On average houses are currently being discounted by 5.5 per cent from their initial list price and, of those houses which sold past year, vendors had owned their properties for an average of 9.0 years. Keperra has its own shopping centre with many retailers and a Woolworths supermarket, while also being home to a smaller independent supermarket. The adjacent suburb’s of Mitchelton and Arana Hills also have shopping centres within, with the shopping centre in Mitchelton being a major centre. The suburb and surrounds also house a very large supply of dining amenity. Keperra is extremely well serviced by public transport with Keperra having two train stations (Keperra and Grovely). Buses also service the suburb via the interchange at the Great Western Shopping Centre. By private vehicle, access to the suburb is good via Samford Road.

Cannon Hill – is located approximately seven kilometres east of the Brisbane CBD and is a long-established residential area which was heavily developed during the 1950s. The suburb has significant amenity with a shopping centre and a commercial office precinct within the suburb as well as a number of parks and open spaces. The suburb’s current median house price sits at a relatively affordable $482,500 and over the past year median prices have fallen by -7.2 per cent. On average, houses are recording discounts of 6.9 per cent from their initial list price and across the 77 houses which have sold during the past year the vendors had owned these properties for an average of 6.4 years. Cannon Hill enjoys the benefit of its own local shopping centre which includes supermarkets, discount stores and specialty shops. The closest major retail amenity is found approximately four kilometres away at Carindale which is one of Brisbane’s largest shopping centres. The local suburb also has many restaurants which adds to the appeal. Cannon Hill enjoys excellent public transport amenity with a train station situated in the suburb and a bus interchange located at the shopping centre. By private vehicle, access to the suburb is very good via Wynnum Road and Creek Road and the suburb is also just minutes from the Gateway Motorway.

Fairfield – is located in the inner south region of Brisbane just four kilometres from Brisbane CBD. The suburb is highly desirable due to its inner city location, position adjacent to the Brisbane River and the significant supply of open spaces within the suburb and its neighbouring areas. The current median house price of just $580,000 is relatively affordable for a suburb so close to the city and which sits adjacent to the river. Over the past year median house prices have fallen by -7.2 per cent. The past year has seen houses discounted by an average of 5.4 per cent and of those properties which sold during the past 12 months, vendors had on average owned these properties for 6.8 years. Fairfield has its own neighbourhood shopping centre including a supermarket. The closest major retail amenity is found within the Brisbane CBD which is home to substantial retail amenity. Fairfield itself has little dining amenity, however, surrounding suburb’s such as Yeronga, Dutton Park and Annerley provide ample supply. Public transport amenity within Fairfield is very good with the suburb having its own train station and a number of bus routes also servicing the suburb. Private vehicle access to the suburb is also good quality and it is generally achieved via Annerley or Fairfield Roads, whilst the suburb’s is also reasonably close to the South-East Freeway.

Kedron – is a long established suburb of Brisbane, situated in the inner north just seven kilometres from the CBD. The current median house price within Kedron of $480,000 represents strong affordability, especially when considering nearby medians and the significant infrastructure improvements set to be undertaken in the area including the Airport Link and the Northern Busway. Over the past 12 months median house prices have fallen by -6.5 per cent and have recorded an average discount of 7.9 per cent. Of the 135 house sales during the past year, these vendors had owned their properties for an average of 9.3 years. Kedron itself doesn’t have much in the way of retail amenity, however, the adjacent suburb’s of Chermside, Stafford and Lutwyche all have significant shopping centres, the largest of which is situated in Chermside which is one of Brisbane’s largest shopping centres. Kedron and surrounding suburb’s enjoy significant supply or restaurants. Chermside to the north of Kedron also has a growing office precinct affording a local employment node. Numerous bus services run through Kedron, predominately along Gympie Road. In coming years the Northern Busway, which will eventually run from Chermside to the CBD, will provide dedicated bus lanes to and from the city. The suburb is also relatively close to train stations at Wooloowin and Eagle Junction. By private vehicle, the suburb is easily accessed via Gympie Road which is a major arterial road.

Adelaide

Thebarton – is situated directly to the north-west of the Adelaide CBD and is located within the West Torrens LGA. When compared to surrounding suburb’s and considering the current median house price of $395,000 it represents a very appealing purchasing opportunity especially considering how close it is to the CBD. Over the past 12 months the median house price has increased by just 2.3 per cent. Of those houses which have sold during the past year the average time which these vendors have owned their property has been recorded at 6.6 years. Thebarton has its own independent supermarket which provides much needed convenience to the local area. The closest major retail amenity is found in the Adelaide CBD where there is a significant supply of retailers. There are few restaurants situated in Thebarton however, the CBD and North Adelaide have a very large supply of restaurants and dining options and both are directly adjacent to Thebarton. Transport amenity within the suburb is entirely comprised of buses which run along most of the major roads whilst North Adelaide and Bowden train stations are within walking distance of most parts of the suburb. Access by private vehicle to Thebarton is also quite easy thanks to Port Road and South Road, both of which are major roads.

Glanville – is located on the Le Fevre Peninsula approximately 13 kilometres north-west of the Adelaide CBD. Situated within the Port Adelaide Enfield LGA the suburb has a very affordable median house price of $300,000 which is much more affordable than most surrounding suburb’s. Over the past year median prices have increased by 2.7 per cent. Of the houses which have been sold in the past 12 months, the vendors had on average owned these properties for 7.0 years. Glanville does not have any supermarkets in the suburb however, amenity is found nearby in Port Adelaide. The closest major retail amenity is also found in Port Adelaide. In coming years local retail will improve dramatically thanks to the significant development being undertaken at neighbouring New Port. Currently there are many restaurants and cafes found nearby in the waterfront suburb of Semaphore. There is a train station in Glanville. At the moment, there are two train lines that run through Glanville; one is for freight and one is for passengers. As part of the Newport Quays development, the freight trains will be re-directed to another line and will not travel through Glanville. This re-direction of the freight trains through this suburb will add to the appeal of the area. A number of bus services also run throughout the suburb affording additional transport amenity.

Brompton – is an Adelaide inner city suburb, within the Charles Sturt LGA, located approximately 3.5 kilometres north-west of the Adelaide CBD. The suburb represents strong relative affordability compared with suburbs located an equal distance from the CBD to the south or east with a median price of $460,000, over the last year median prices have increased by 15.3 per cent. Of those people which have sold during the last year they have, on average, owned their house for 6.8 years and the average vendor discount was measured at 8.2 per cent. The main location of retail amenity for Brompton is within the Adelaide CBD, home to the state’s largest office market and a vast array of retail amenity. Whilst there is a smaller retail offering located in nearby Welland. The local area has some dining amenity, however significant supply of restaurants cafes and bars is found nearby within Adelaide and North Adelaide. Whilst Brompton doesn’t have its own train station, train amenity is within close proximity at Bowden and Ovingham. Access to Brompton is of a high quality via Torrens Road and Hawker Street, with nine bus routes servicing the suburb, predominately along these major roads.

Torrensville – is situated less than three and a half kilometres west of the Adelaide CBD. The suburbs housing market represents strong affordability for an area located so close to a CBD with a median price of $430,000 and median price growth of 7.6 per cent during the last 12 months. Torrensville has recorded an average vendor discount of 6.0 per cent and those properties sold during the last year have been owned for an average of 6.3 years. The suburbs housing market is dominated by properties on small blocks of land which are generally lowset and built from brick and concrete, these properties generally appear to have potential to be renovated. The suburb has the benefit of its own local shopping amenity within Torrensville Plaza which has a supermarket as well as some smaller retailers. Meanwhile, major retail amenity is found close by within the Adelaide CBD, less than four kilometres away. The suburb also benefits from local dining amenity along Henley Beach Road whilst significant additional supply is found in the CBD and North Adelaide. Access to the suburb is efficient via Henley Beach road and many bus services use this route which affords quality public transport amenity to the CBD.

Parkside – is located directly adjacent to the Adelaide CBD (south-east). The suburb has a current median house price of $570,000 which is comparatively affordable for a suburb so close to the city n the south or east area of the city. Over the last 12 months median prices have fallen by -5.8 per cent making the suburb much more affordable. Of those vendors which sold their house in the last year they have on average discounted the original list price by 6.1% in order to sell and have owned the property for an average of 6.7 years. The houses are what you would deem typical inner city Adelaide, small houses and cottages on small blocks of land, some are likely to have potential to be renovated. Local retail amenity is found nearby within the Adelaide CBD and other shopping centres are located nearby in Unley, Frewville and Glenside. All of these areas also afford a supply of restaurants also. Whilst the suburb doesn’t have its own train station it is extremely close to the city centre, by private vehicle quality access to the suburb is enjoyed via Glen Osmond and Greenville Roads.

Perth

Bassendean – sits on the shores of the Swan River, approximately nine kilometres north-east of the Perth CBD. Located within the Bassendean LGA the suburb’s median house price of $450,000 is much more affordable in comparison to nearby suburb’s and is extremely affordable for a location within a 10 kilometre radius of the Perth CBD. The past 12 months has seen median house prices fall by -7.2 per cent, of those houses which have been taken to the market and sold during the past year, the previous owners had owned the property for an average of 7.0 years. Bassendean has its own supermarket as well as convenience retail amenity within the Bassendean Village shopping centre. The closest major retail facilities are found within Centro Galleria Shopping Centre in Morley. There are few restaurants within Bassendean however nearby Midland and Guildford have a significant supply. Access to Bassendean is very good by public transport thanks to the Bassendean and Success Hill train stations within the suburb. Many buses run through the suburb, with stops on Broadway, Scaddan Street, Guildford Road, Old Perth Road and Railway Parade. By private vehicle, the suburb enjoys quality access with Guildford Road linking directly to the CBD and the Great Eastern and Tonkin Highways situated nearby.

Thornlie – is situated within the Gosnells LGA approximately 15 kilometres south-east of the Perth CBD. The suburb is extremely affordable with a median house price which sits at $365,000, well below the Perth median and much more affordable than surrounding areas. Over the past year the median house price has fallen by -4.6 per cent and those properties which have sold have been owned by the vendors for an average of 7.4 years over which time they have seen the value of the property boosted immensely. The suburb is extremely well catered to for retail amenity with Forest Lakes Shopping Centre and Thornlie Square Shopping Centre both located within the suburb, additional facilities are also found in neighbouring Maddington. Whilst not home to significant supply, Thornlie along with nearby suburb’s has an ample supply of restaurants and cafes. Transport amenity to Thornlie is very good with the new train station which opened in 2005 providing a transport link directly to the Perth CBD. The suburb also enjoys good vehicular access with the Roe Highway running through the suburb and the Albany Highway within close proximity.

Kenwick – is one of the more affordable suburbs of Perth and is located approximately 14 kilometres east of the Perth CBD. Kenwick is situated within Gosnells LGA and has a current median house price of $325,000 which has fallen by -5.8 per cent in the last 12 months. Of those properties sold during the last year, they had on average been discounted by 5.7 per cent whilst on average vendors had owned these houses for 6.7 years. Kenwick is within very close proximity to the junction of the Albany and Roe Highways, the Tonkin Highway is also in close proximity to the suburb. These highways afford excellent access to the suburb. It’s not just the access by private vehicle which makes the suburb appealing, Kenwick also has its own train station situated on the Armadale line. Buses also service the suburb via Kenwick Road and Brixton Street. The adjacent suburb Maddington has its own shopping centre, Centro Maddington which has a Coles and a Woolworths supermarket as well as a K Mart store and 96 specialty shops. Maddington and nearby Cannington also have a range of local dining amenity. The suburb is located close to an industrial precinct within Maddington and another similar precinct at Cannington which provides local employment.

Cannington – is situated just ten kilometres south-east of the Perth CBD. Located within the Canning LGA the suburb represents good affordability with a current median house price of $402,500 and the last year has seen price falls of 11.8 per cent. The last 12 months saw 32 houses sales and across these sales the average discount was recorded at 9.5 per cent and those properties which sold were owned previously for an average of 6.9 years. Cannington is home to one of Perth’s largest shopping centres, Westfield Carousel which includes a Myer, K Mart, Target and cinemas as well as numerous specialty stores and fast food and take-away outlets. Restaurant’s are also in abundance within the local area which caters to most needs and tastes. The suburb is home to a number of bulky goods retailers along the Albany Highway which provide employment and additional retail. Access to Cannington by private vehicle is of a very high quality with the Albany Highway located in the suburb which provides direct access to the Perth CBD. A number of bus services also run to and from the suburb along the Albany Highway, Cecil Avenue and Sevenoaks Street. Cannington also has its own train station which provides access south to Armadale and back to the Perth CBD.

Kewdale – is one of the most affordable suburbs located less than ten kilometres from the CBD with a median house price of $430,000, the last year has seen prices fall by -2.3 per cent. Houses which sold last year had been owned for an average of 6.9 years and vendor discounting was recorded at an average of 5.7 per cent Kewdale is situated in the Belmont LGA and sits less than 9.5 kilometres east of the Perth CBD. The suburb enjoys quality access by private vehicle due to the Leach Highway passing through the suburb. Whilst the suburb doesn”t have its own rail station it enjoys close proximity to a number of stations in adjoining suburbs. Kewdale is also located close to the Perth Airport. Bus services run to and from the suburb and stops can be found on Oats Street, President Street, Acton Avenue, Scott Street, Kew Street, Abernethy Road and Belmont Avenue. The suburb is home to a major industrial precinct however, it is clearly separated from the residential area of the suburb. Belmont Forum Shopping Centre is located in the neighbouring suburb Cloverdale and has significant retail amenity including a Big W, Coles, K Mart, Woolworths and Harvey Norman.

Looking towards how the market will perform during 2010.

With interest rates now rising and a large part of the Federal Government stimulus winding back the Australian property market is likely to experience a more modest level of growth than what was recorded in 2009. Over the first nine months of 2009 national property values increased by 8.1 percent.

The markets that are most sensitive to interest rate movements and housing affordability are likely to be dampened the most by the removal of stimulus, including interest rates rising from their emergency lows. Housing demand from first home buyers and lower income households is likely to fall; in fact the first home buyer numbers in the market were already declining into the second half of 2009.

The latest housing finance data from the ABS shows there has already been a large jump in investor numbers in the market place and this trend is likely to continue. Investors are very much less price sensitive than first time buyers and in many respects, a rising interest rate environment may cause more investors to become active, taking advantage of the lower level of competition in the market.

Premium priced markets are also likely to continue a swing upwards in value. As the economy and equities markets improve, premium property market conditions are likely to improve also. These markets are much more closely linked with business conditions. Australia”s most expensive property markets recorded larger declines than the broader market place in 2008 and in 2009 these same markets were recording some of the largest gains due to the improved economic conditions.

With more prospective first home buyers being blocked from the housing market due to affordability constraints, it is very likely rental demand will continue to place upwards pressure on rental rates. Higher rental rates will translate to stronger yields for investors, fuelling investor demand for Australian housing.

Information Supplied By:

RP Data Information Services

Tel: +61 7 3114 9999 

Fax: +61 7 3114 9900

Website: www.rpdata.com