Alice Bradbury| realestate.com.au| 17 November 2015
The inner-city suburbs of Australia’s mining states are proving the most favourable metropolitan areas for buyers.
Darwin is the number one inner-city suburb in the country where buyers could have the upper hand.
The Top End capital has a median price of $500,000, plenty of unit stock pushing up its supply to demand ratio and a higher number of days on market for overall listings, new data shows.
In good news for WA locals, the remaining data pointed west. Eight out 10 suburbs on a national list of areas with favourable buyer conditions are from Perth’s inner-ring.
West is best for buyers
Rebecca Freeman, Licensee of LJ Hooker City Residential says that East Perth, number two on the realestate.com.au’s Buyers Market Index, is experiencing a new boom of development.
“There’s plenty of stock on the market, with a lot of new stock coming through and a lot of development still happening,” Freeman says.
“It’s become more affordable because there’s higher supply.”
An increase in apartment stock has provided more choice and less competition for buyers in East Perth.
With plenty of local cafes and restaurants, and a new footbridge being built to Perth Stadium, Freeman says East Perth offers a great lifestyle, with plenty of growth to come.
“It’s a great place – you’re right on the river and it’s only about a 12 minute drive to the airport, which is appealing for fly-in-fly-out workers.”
David Weir, Sales Associate of Peard Real Estate in Nollamara, north of the Perth CBD, says it’s no surprise the suburb is starting to come to the attention of buyers.
“It’s one of those sleeper suburbs that’s now coming of age,” he says.
“It’s first-home entry buyer level and it’s starting to attract that younger, more vibrant community.”
Weir says Nollamara is blessed by geography.
“It’s 15 minutes to the coast, 15 minutes to the city and five minutes to a café strip,” he says.
“It’s a suburb that’s poised to jump in value.”
Lee Riddell, from M Residential in South Perth says the market had seen a correction in WA overall.
“There’s a lot of supply of apartments in South Perth, and prices have come off, so it makes it attractive for buyers,” he says.
“I think the key driver for people wanting to buy in South Perth is that it’s considered inner-city living but it’s not in the city. It has a ferry linking it straight across to the new Elizabeth Quay development and the schooling around here is a huge consideration, with schools like Wesley College and Penrhos College very close by.”
Prices have come off in South Perth.
It’s an easy commute to work, and downtown bars, in trendy South Perth.
Darwin number one for attainability
Derek Hart of Elders Real Estate – Palmerston says living in the centre of Darwin has never been easier for buyers.
“For the first time in my eight years of real estate prices have come down,” Hart says.
“It may be because the government incentives aren’t there anymore – for a brand new home you get $26,000, where as you used to get stamp duty free as well.
“With established homes you get nothing. When all those grants were out there first home buyers were putting pressure on second and first home buyers.
“Now we’re selling to a lot of people buying their second and third homes.”
Harts says there’s also a lot of new development taking place, flooding the market with an oversupply of units and apartments.
“A lot of units are being built so there’s an oversupply of demand, prices have come down and rents have come down,” he says.
An influx of new apartments in Darwin have made it easier for buyers to find a home.
Hart says buyers would be wise to get in now while there’s less competition – because the market won’t stay this way forever.
“Prices have plateaued, but we don’t think they’re going to go down any more.
“Inner-city properties within 10km of the CBD of Darwin are still cheaper and bigger in size than most other parts of Australia.
“Plus you’re right in the heart of the city, close to nightlife, entertainment, festivals – you’re in the waterfront precinct which has an outdoor cinema, wave pool and casino.”
Furthermore, Hart says there are plenty of offshore investors who have expressed significant interest in Darwin.
“There’s been talk of a big six-star hotel being developed, a rail to Sydney which will bring job opportunity and growth.
“The Chinese government has just leased the port, which will bring investment to flood the market. There’s potential for Darwin to turn into a Hong Kong.
“It’s an exciting place, all driven by local government who want to back small and large investors – it’s going to open up doors.”
Bright future: Is Darwin property set for a rebound?
There’s potential for Darwin to turn into a Hong Kong.
Understanding the data
realestate.com.au’s Top Buyers’ Market Index ranks suburbs by the lowest ratio of demand to supply and the highest number of days on market. The rankings also take into account the difference between the original listing price and the final sold price, with many suburbs home to vendors willing to negotiate a sale.
To rank only inner-city suburbs we looked at areas that fall within 10km of one of Australia’s capital cities. Only suburbs with at least 60 properties sold in the last 12 months were included.
The top 10 – national
- Darwin NT
- East Perth WA
- Cloverdale WA
- Nollamara WA
- South Perth WA
- Rivervale WA
- West Perth WA
- Osborne Park WA
- Glenorchy WA
- Bentley WA