The month in review: South Western WA
By Herron Todd White
July, 2010
The lazy half million in the southwest of Western Australia,
where to spend it and what to buy, this is the question?
Sales have been searched for the past 6 months in the
price range of $450,000 to $550,000 and, it seems, what
you can get is really quite a lot. Whether it is a 485sqm
vacant lot located next to a canal or a larger 784sqm
vacant lot with ocean views, a modern 4 x 2 in a beachside
suburb or a small office on the main street of Bunbury
WA right through to an acre bush block with a 1980’s 3
x 1, the choice could be yours. This is only in the greater
Bunbury area with more options available further south
in towns and regional areas.
Part of the reason for such a large choice and variety in
the area is that the median house price for the Bunbury
area (as per Pricefinder) is only slightly over $300,000,
making properties of $500,000 well over average as far as
quality is concerned. The continued influx of immigrants
from both overseas and interstate and the large
numbers of’ “fly in fly out’ workers has seen an increase
in the numbers of families in the area that can afford, and
demand, something better than the basic. This, coupled
with traditionally lower pricing (compared to Busselton,
Dunsborough or most capital cities) has meant the market
for these second or third house purchasers is priced about
right to satisfy the needs of the buyer.
Are there any good buys to be had in this market? Well
probably yes, as the sentiment out there at present could
be characterised as flat in the extreme. Sales are taking
place but not with any great urgency and generally on
more favourable terms to the buyer than the seller.
Sellers in no hurry will sell in reasonable time provided
the price is realistic but there appears to be no real
heat in the market. This is possibly due to the ongoing
speculation around double dip recessions and P.I.G.S. in
Europe, (hopefully not a contagious swine flu).
None of these factors however take away from the basic
drivers of supply and demand and with the ongoing
population increase and large infrastructure projects
providing well paid work, logic would dictate that the
prices in this sector of the market will increase over
the longer term and possibly at a faster rate than the
average.
So be it an apartment or bush block, renovated dwelling
in a good location or just new and flash, the options to
buy are there to be had in many shapes and sizes in the
south west of Western Australia.
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