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Western Australia’s property market scorecard

Western Australia’s property market scorecard

By SIMON PRESSLEY

Western Australia contains Australia’s two of the best performing property markets and four in the Top 10.

Since the year 2000, the property markets of the local government authority of East Pilbara (Newman) and Port Hedland have performed better than any other market in Australia, while Capel and Kwinana ranked ninth and 10th.

Propertyology conducted a study to compare the historical property market performance of each of Australia’s 550 local government authorities (LGA) between 2000 and 2014.

Given that some property markets have higher rates of growth and others have higher rental yields, Propertyology calculated the ‘total return’ (average annual growth rate plus rental yield) and we then ranked the LGAs from one to 550 based on this performance.

One hundred and thirty two of the total 550 Australian LGAs are in Western Australia. Eleven capital city LGAs and 19 regional LGAs were ranked in Australia’s Top 100.

The regional LGAs include Derby (17th), Roebourne / Karratha (18th), Collie (23rd), Wyndham (30th), Carnarvon (43rd), Murray (64th) and York (92nd). Geraldton (135th), Broome (123rd) and Mandurah (117th) also ranked among Australia’s best 25 per cent.

While there will always be a segment of Australia’s population who frown upon investing in mining communities, the indisputable facts are that a large proportion of Australia’s best performing property markets over the last 15 years have a mining flavour within their economy. WA’s iron ore and gas sectors were the prominent growth drivers, especially during the period 2004 to 2012.

In spite of 16.6 per cent and 13.9 per cent declines in median house values in Newman and Port Hedland respectively during 2014, they are still streets ahead of the rest of the country. Double-digit price growth occurred in nine of the last 15 years. Over the nine-year period to December 2012, median house values increased by 9.1 and 5.5 times respectively. And, even though there’s been a spike in vacancy rates of late, rental yields remain well above average.

Kwinana is the highest ranked capital city LGA in Australia for total return over the period 2000 to 2014. The affluent Peppermint Grove ranked 184th.

Perth was the second best performing capital city over the 15-year period (behind Darwin). The median house value for Greater Perth has increased from $248,583 at the start of 2000 to $898,844 by December 2014. Over the six-year period to December 2007, Greater Perth’s median house value increased 2.89 times.

About Simon Pressley

Simon Pressley is managing director of Propertyology, an REIA Hall of Fame inductee, property market analyst, accredited property investment adviser and buyers' agent. Propertyology works exclusively with property investors to purchase properties in strategically chosen locations all over Australia.


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Original author: Simon Pressley
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