Perth Inner Suburbs for Value Investment Potential

Inviting all Perth Gurus,

I am in process of narrowing down Perth inner suburbs for house in terms of value potential for future growth. The idea is to consolidate the responses from this thread(and other related) to make it close to an actionable intelligence.

Here's a list of all inner suburbs, would you please provide your opinions against a/any/many suburb(s).


Inner North

• Balcatta, Balga, Bedford, Coolbinia, Dianella, Embleton, Glendalough
• Inglewood, Joondanna, Leederville, Malaga, Maylands, Menora
• Mirrabooka, Morley, Mount Hawthorn, Mount Lawley, Nollamara, Noranda
• North Perth, Stirling, Tuart Hill, West Leederville, Westminster, Yokine

Inner South

• Bentley, Burswood, Cannington, Carlisle, Como, East Cannington
• East Victoria Park, Karawara, Kensington, Kenwick, Queens Park, South Perth
• St James, Victoria Park, Welshpool, Wilson

Inner South West

• Alfred Cove, Applecross, Ardross, Attadale, Bateman, Bibra Lake, Bicton
• Booragoon, Coolbellup, Hamilton Hill, Hilton, Kardinya, Melville
• Mount Pleasant, Murdoch, Munster, Myaree, North Lake, O’Connor
• Palmyra, Samson, Spearwood, White Gum Valley, Willagee, Winthrop

Inner East

• Ascot, Ashfield, Bassendean, Bayswater, Belmont, Cloverdale
• Eden Hill, Kewdale, Kiara, Lathlain, Lockridge, Redcliffe, Rivervale

Inner West

• Churchlands, Crawley, Dalkeith, Doubleview, Floreat, Gwelup
• Innaloo, Jolimont, Karrinyup, Nedlands, Osborne Park, Shenton Park
• Subiaco, Wembley, Woodlands
  
  
  Every opinion is welcome,
  some pointers for reference but not limited to
  • What do you like/dislike about a
  • Why you would/wouldn't buy,
  • Great for OO / Investment
  • Would buy just not at X price but rather at Y price.
  • Value in terms of falls it had from its peak
  • Value in terms of way below its peak 12 yrs ago.
  • etc
  
  Thanks guys and would highly appreciate your response.
  
  Tagging few respected poster may have missed few, All please feel free to give opinions, highly appreciate your time and effort.
  
  @Perthguy @Westminster @Rex @marmot @sash @Leo2413 @Andrew Hancock @Redom @skater @kierank @mues @hammer @DrunkSailor @theperthurbanist @JohnPropChat @Aaron Sice @Shogun @hematite @radioactive @Anthony Brew @Aconis @Propin @Ketsle @eletronic_exp0430 @The Y-man

 

That is one big list and some very complex questions. I don't have time to answer today but most likely late tonight I'll make some big rambling post that will make no sense when I read it in the light of day.

Is it just for CG that you are seeking, ie buy and hold? Or are there other factors at play? What type of stock would you be wanting to buy (house, villa, flat, vacant land)?

 

Thanks @Westminster, appreciate it mate.

I would be investing in house for lazy Investor, buy, hold and rentable with land parcel.

At this stage I am narrowing down suburbs to keep an eye on.

 

I think listing all the inner suburbs is a bit too much. They're just so different. Do you have some more criteria maybe? Like some price brackets?

Otherwise its going to be hard for us to give too much meaningful feedback.

 

Agreed, couple more parameters for us to help you 'narrow down' the list would be great ahha.

I'd start by setting your budget, going to reiwa.com.au, checking out some quick median pricing, and deleting any of the suburbs above that fall outside of it.

 

thanks guys for your response,

• Budget: Between 400k - 750k,
• 3/4 bedder house with land 450sqm+,

 

need you say more?

 

Not going to lie don't really know where to start, it would be easy to just rate suburbs as good/**** but theres also likely some gems within s hit(ter) areas you could then miss out on.

If you're planning on purely buying and holding then really all your eggs need to be in the location basket. Lifestyle drivers such as proximity to water (beach or river) and cafes/shops are going to be paramount. Also if your budget is $400k-$700k and you arent adverse to spending the higher amount, i'd say go for this end of the bracket all day. Some serious bargains to be had around that price with land in good suburbs. The lower bracket i'd say you'd probably need to do some work on.

I'll start off by listing some im familiar with, particularly in the northern corridor. Havn't done any price research just yet as im at work but will give you a good start to start looking at them yourself. Keen to hear what other people think also.

Carine: Big leafy suburb with plenty of mature trees and TONS of parks. One suburb over from 800K+ houses in marmion and one suburb from the beach.

Duncraig: Similar to above, slightly cheaper. Good schools and close to transport.

Sorrento: Borders the beach however suburb is split into 4 sections like a grid. In this price range you will probably be getting a duplex or strata or a new build on one of the new subdivisions that are coming out due to zoning changes. Theres currently a house listed on my parents street for $697k 3x2 on about 450sqm.

Hillarys: Similar to sorrento but probably not as pricey.

Karrinyup: As Chart said above, some houses in this suburb built in the 70s or earlier that are next door to $1M + Mansions.

I'll note that all of these are "West of the freeway", which IMO id say is a pretty common term for property in northern corridor. As the beach is such a major lifestyle/demand factor this can play a part. That being said though there are plenty of suburbs east of the freeway that might be 8 minutes to the beach instead of 6...

To note some other suburbs that have more of a cafe vibe to them i'd probably look into; Scarborough (also beach), Leederville, Mt Hawthorn, North Perth, Mt Lawley, Highgate, Subiaco, South Perth, East Vic Park, Vic Park

I'm also bias towards NOR if you couldn't tell already, just don't know much about the shadow covered lands that is "The South"

 

Thanks a lot mate this is excellent info, really appreciate you taking the time and effort.

 

$600k to $800k range has some some options with good value.

Unlike some investors, I don't restrict myself to any one suburb. Wherever there is good value for my money that's where I'll be. Having said that, I am currently seeing more value for money in inner ring suburbs.

Mt. Lawley in the North and Vic Park in the South are examples for good value and primed for gentrification.
Bayswater is not inner ring but is going to be massive junction with airport link and Ellenbrook-Morley terminated there. The town structure plan is a nice bonus.

Willagee, North Perth, Booragoon are also on my list.

I always look for a large land component with OKish house.

 

Thanks john,

 

Hi @Ketsle , @JohnPropChat , What are your views on Yokine, Cloverdale, Glendalough, Balcatta, Coolbinia?

 

Coolbinia is a quiet little suburb near North Perth. I know people with a 2 million dollar home there.

Balcatta is varied on one side near Gwellup/Stirling with creep into the suburb. The Eastern side is near Nollamara a no no suburb on here but prices are 50 to 100k difference by crossing roads and suburbs.

Part of northern section is light business. Some nice old homes in area. Borders on Warrick?

Glendalough is a hub near train station, western side is getting closer to Western Suburbs

Perth people like the idea of the beach. Perhaps North of Perth, South of Joondalup and West of freeway. As an area to look.

 

Yokine - overpriced
Cloverdale - Going through a bust cycle. Good stuff shows up every now and then.
Glendalough - Tiny suburb squished between freeway, Osborne park industrial and Webmley.
Balcatta - A very mixed bag. North is all commercial.
Coolbinia/Menora - Nice suburbs but I feel that the same money can fetch better deals in surrounding suburbs. A dev potential block in Inglewood perhaps

 

Not sure about the beach thing. Many I know like rivers/lakes (including myself). Many beach suburbs in the North are cliff beaches anyway. For OO stuff can't go wrong west of Marmion Ave as a general guideline.

 

I wouldnt say the fact they are cliff beaches has any negative impact, if anything its positive as we've got a million miles of sand elsewhere and its a great walk along the coast. You can swim at many of them anyway with the reef thats there, and plenty of surf spots too.

 

Agree with all said above and will also say that I live in glendalough. In terms of amenity it's great for renters, 5min walk to train, close to shops and lake monger for walking, but I wouldnt buy my own house here. For a yield play you might find something suitable, lots of townhouses and duplexes on the market. I can't see it being a great area for capital growth, theres high supply in these units (Not to mention the social housing component which probably makes up half the suburb?), and it has from what i can tell the only (and ugliest) 10-15 story apartment complex north of the river which was probably built in the 70's by the looks. There are some older houses on large blocks in the area zoned R60 which have development potential but you'll never know when these are coming on the market, and you'll be fighting with plenty of other developers for the site. Stockland are also bringing 100 new dwellings onto the market through a new development in the next 5 years.

Tl;dr - Avoid glendalough for CG

 

This narrows it down a bit, but still lots of choices...

Would you like to go more for something with an old house and closer to land value, or really looking for something with quite a modern building and to rely on the land+house to be the driver of growth?

 

I am researching for my B&H IPs to get in when the time is right, so its more of an suburb narrowing exercise hence bit loose ended. I would be after value type with land compo but rentable not necessarily modern and shiny.