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Houses ‘free’ in some Perth suburbs, claims industry specialist

By Tim Neary 21 August 2017 | 1 minute read

The growing affordability of the Perth real estate market is highlighted by the fact that in some Perth suburbs, you can now effectively buy a house for free, according to a leading authority. 

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Shane Kempton, CEO of Professionals Real Estate Group, said that a rising number of homes in more affordable established areas of PerthPerth, TAS Perth, WA can now be bought for the effective land value of the property.

He said that this is particularly the case with established suburbs that have median house prices of under $350,000.

“Many of these properties are found in the south-eastern and south-western suburbs of Perth,” Mr Kempton said.

“These homes are generally more than 40 years old and in original condition, meaning that the structure of the home is fully depreciated and you are buying the property for effective land value.”

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Mr Kempton said that these suburbs include ArmadaleArmadale, WA Armadale, VIC, where the median house price is $287,000, and Camillo, where it is $295,000.

He also said that the south-western suburbs have the largest range of “free” houses in suburbs, ranging from Calista ($300,500) to Warnbro ($335,000), and further south around Mandurah, such as the suburb of Greenfields ($293,000).

“For astute property investors and first home buyers, these older-style affordable homes represent great value for money,” Mr Kempton said.

“Many of them are still in good condition as they have been constructed with brick and tile and require just cosmetic improvements.

“The location of these older-style homes in established suburbs means that there is a high of social amenities such as pubic transport, shops and schools.”

According to the latest CoreLogic Property Market Indicator data, home values maintained their upward shift in all but one capital city, with Perth the only one bucking the trend. 
 
The data found that – combined – the daily home value index grew by 0.3 per cent as Perth fell by 0.4 per cent, while all of Sydney, Melbourne, Brisbane and Adelaide grew by 0.5 per cent, 0.1 per cent, 0.2 per cent and 0.6 per cent, respectively.
 
The combined monthly home value index was also up by 0.3 per cent, and up by 10.6 per cent for the year.

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Houses ‘free’ in some Perth suburbs, claims industry specialist
House, nest
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