A number of key infrastructure projects are set to make a mark on Western Australia’s lagging residential market, according to CBRE’s latest MarketView report.
The under-construction Fiona Stanley Hospital is expected to assist the near soNumerous projects are set to make a mark on Western Australia’s residential marketuth property markets as employment opportunities improve, and similar developments in suburbs including Piara Waters, Baldivis and the outer northern fringes are also expected to generate positive growth over time.
While these developments are expected to drive growth in the long-term, investors may see house prices lagging in the near future, according to CBRE Global Research and Consulting associate director Sam Reilly.
The Bunbury freeway extension, for example, has not yet benefited the major regional city of Mandurah.
“It has taken people out of the area, which has reduced consumer spending levels and therefore reduced employment growth potential,” Mr Reilly said.
“As a result, the freeway extension is likely to contribute to subdued potential for capital value growth for Mandurah in the short to medium term,” he said, with increased supply levels and softened prices trending across the house and unit market due to fewer buyers.
However, Mr Reilly explained, the large scale projects in the pipeline and the resources sector should contribute to an increase in demand in the long-term.
“Overall, the state does remain in a fortunate situation courtesy of the resources sector and the supply pipeline of large scale projects has provided Western Australia with a stable economic outlook,” Mr Reilly said.
Mandurah, and its surrounding suburbs, were also flagged for long-term growth by wHeregroup director Todd Hunter in Smart Property Investment’s Fast 50 report.
Speaking to Smart Property Investment, Mr Hunter said the last WA property boom saw Mandurah’s prices increase, making the town one of the top performers for two years straight.
“Since the end of that boom we have seen the exact opposite occur, with prices dropping below the pre-boom mark,” he said.
Mr Hunter’s pick of Mandurah’s surrounding suburbs was Greenfields, where he says low-entry level investments still exist with four bedroom homes available for under $300,000.