The month in review: South Western WA
By Herron Todd White
May, 2010
The South-West of WA offers a huge range of properties
from the very affordable to the definitely upscale, first
home buyers to mansions of serious proportion.
I read an article recently about the most affordable
beachside suburbs in Australia and was interested to see
one of the suburbs featured was Withers in Bunbury. It
is possibly the most affordable suburb in the south– west (in a regional centre) with a high percentage of
Homeswest (WA Government Housing) residences, the
majority of which are three bedroom, one- bathroom
dwellings on anything from 400sqm to 1000sqm blocks.
The properties range in age from the 1950s to the 1980s,
with some more recent infill units completing the picture.
Condition of the properties varies greatly but on the
whole is generally below average in comparison with
surrounding areas. Currently most of the area is zoned
R15 but there is planning for higher density development
being considered in the foreseeable if undefined future.
This may well provide some opportunity for investment
but only on a long-term basis because, as mentioned
before, the time frame for subdivision is at best uncertain
and the economics of development at this time are only
marginal. This is evidenced in the nearby suburb of Carey
Park which has similar housing stocks but is zoned R30
and so has seen many of the larger blocks divided into
two or three titles. While this is still happening, the
profit margin on these developments appears to be fairly
slim at this time.
An example of a sale of a fairly typical house in Withers is
73 Devonshire Street, which sold in November 2009 for
$218,500. The property comprises a 1967, three bedroom,
one bathroom brick veneer and tile dwelling with a patio,
fair presentation and a detached double garage, all
located on a 683sqm. Better and newer dwellings reach
up to approximately $270,000. The median house price
has fallen from its peak in December 2006 of $275,000 to
closer to $240,000 with a downward trend still showing.
As for that beachside location? Well, if you look on a
Google map it is near the beach but the problem is a
300m high (well it’s big anyway) sand hill separating the
houses from the water, so not too many water outlooks
in this area. It must be noted however, that there is great
exercise potential if you want to walk to the beach. I guess
there is something to be said for employing someone
with local knowledge.
At the opposite end of the scale is the beachfront suburb
of Eagle Bay which is located near to the small town of
Dunsborough. The area is well regarded as a holiday
destination with surfing in abundance and the Margaret
River wine district just down the road.
A recent sale of note was for a vacant 2658 square metre
block located on the beachfront with direct water access
which sold for a little over $7 million. We note the same
property sold in 2007 for $10 million, so prices have
certainly come back here.
Another sale within the past year was for an eight
bedroom, eight- bathroom dwelling located on a
2000sqm block with expansive views and a sale price of
$5.8 million. Compared to the vacant land this would
appear to be very reasonable but a major driver of price in
this area appears to be the ability to walk out the front of
the house and straight into the tide with no interruption.
An average property in the area generally sits on a
2000sqm block and when improved with a modern, four
bedroom, two bathroom dwelling, will command a sale
price of something close to $2 million.
As to whether this is a good place to buy right now is
debatable, with the prospect of rising interest rates
and some burnt fingers from the GFC, the market for
the ultimate in beach shacks may still have some way
to go before returning to its glory days. Having said
that, there have been some good buys in the area with
bargain hunters able to drive some fairly hard bargains.
The market however appears to have bottomed out so
bargains are now harder to come by.
All in all the south-west region can provide something for
everyone, be it the first home buyer on a budget, through
to the mining executive on a different budget, lifestyle to
beachfront to small units, the range is extensive and the
place is pretty nice to live in as well.
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