WA Perth suburbs with capital gain AND development potential ($500-$650k range

Hi all,

So I am starting out on the hunt for my next develop-to-hold site and am in the process of trying to identify a list of suburbs to target. I am doing a bit of my own research into what areas look set to grow (happy to share once it is progressed), but I was hoping to get the PC experts’ thoughts on what suburbs you think are both set to experience strong capital growth AND contain development sites that are stacking up in the current market.

My basic criteria are:
*Prospect of ‘above average’ capital growth (as I will be holding some or all of the final product for the long term);
*Duplex/triplex sites available in the $500-$650k range (preferably with a retainable dwelling);
*Development sites yielding 15-20% profits;
*Within Perth Metro Area (I will be developing myself so ‘need’ to be close).

What suburbs are people aware of that meet these criteria?

Do these even exist at the moment?

 

City of Belmont LGA.

East Cannington and Beckenham, but watch for clay.

Gosnells and Thornlie but be picky selecting the site.

 

Thanks @Perthguy . So are you seeing development sites that are stacking up on the feasibility in these areas? What sort of profit margins?

Also what are the top reasons you are backing these specific suburbs for capital growth?

 

I'm no developer but the R60 lots in joondalup around currambine train station look pretty sweet. The occasional R40 bargain pops up in heathridge too, some duplex sites going with battle-axe possibility for under 400k

 

Following....

 

I haven't done a feaso in ages, so I have no idea if they stack up. That's your job

I posted this earlier. The links are broken but you can find in the original post:

Current price, location and they appear to me to be under intrinsic value. It seems like they should be more expensive for what they offer in terms of proximity to the CBD vs current price.

Also, there is a lot of investment in infrastructure, especially Belmont Forum and Carousel Shopping Centre (not sure about Thornlie).

 

I'd probably go Willagee or Hilton, from a SOR perspective. Coolbellup and South Lake are other options in the 400k range.

 

What do you like about Coolbelup and South Lake?

 

Coobie has retain and subdivide lots for low 400s - some of them with very generous proportions and decent renovation potential existing dwellings. Honestly I see some of the easiest margins there out of all the suburbs in Perth. I'm surprised no one else has seen this...

South Lake I think will be similar when the rezoning goes through - no set timeline for it, but City of Cockburn has proven itself to be quite speedy with their rezonings compared to some other councils around town.

 

Hi I'm look at Willagee as well , but the public housing is so high .do you worry about that?

 

if you look at the willagee revitalisation plan which is underway, council aims to significantly lessen whatever is left of the public housing in the area. sure may not be overnight, but that is why the early bird catches the worm.

also if i may add, i think it was stockland who won the rights to develop that huge parcel of land facing north lake road?

 

Anyone else with point of views?
If there is a not much state housing then willagee is great in terms of location!

 

Interesting, do you mind sharing some insights about why willagee is great in terms of location?

When I pull up Google Maps the suburb doesn't stand out. No train station, no major shopping centre and not next to major freeway/arterial so I'm wondering whether there are something secret about this suburb that only locals know

Cheers,
David

 

The park pocket in Currambine has a lot of bigger houses (450sqm) on R80 sites, but the flats in the area make anything difficult to sell.

The numbers on getting an R40 laneway lot in Burns Beach / Iluka and putting two or three on as a combi multi dwelling / townhouse is also quite interesting - lots of downsizers wanting to move there.

Forrestfield is super hit-and-miss but undeniably one of the better long term prospects in the R20/R60 area. Be careful though, lots of split coded development caveats so make sure you get good advice about developability before purchasing. You also need the right product - don't even think about a typical one-up-one-down apartment layout.

Bayswater and Bassendean town centres are also an amazing long-term hold opportunity. I think once Bassendean refresh their planning team and introduce a Transition Town movement, we will see it blossom.

 

Around the $650k mark, may also get lucky in vic park. Gentrification, very central, good schools etc. Ticks a lot of boxes.

 

Hi David, the statement surely has its own context.

Most of the surround suburbs are bluechips. Full sized development site is at low 500k however you will pay high 700k+ in suburbs like melville across the road of leach high way:

1 Denien Street Willagee WA 6156 - House for Sale #128657978 - realestate.com.au
309 Marmion Street Melville WA 6156 - House for Sale #128290626 - realestate.com.au

Note the example block on melville is on a main road.

The location is relatively comparable to those blue chip suburbs but at a difference cost.

In terms of the access to amenities, willagee is about 5km to a main shopping center (garden city); 5km to uni; 5.5km to freeway and train station; 6.5km to hospital, 7km to beach and fremantle center. These are not straight line distance but the drive distance, which is completely fine/good based on the standard of Perth lifestyle.

 

Ah, so it's an undervalued suburb surrounded by blue-chip suburbs. The ugly-duckling while still in reasonable drive distance to main arterial and amenities.

Thanks for taking the time to explain in detail - lots to learn on the Western Capital

Cheers,
David

 

What I still don't understand is that heathridge has 10 years of negative growth while suburbs literally 5 mins away by drive such as a kallaloo is twice expensive.

 

It's called the good side of Marmion Ave ..

Not to mention the quality of homes.

 

Where are the numbers from showing 10 years of negative growth?