WA What's wrong with Lockridge and Eden Hill?

Discussion in 'Where to Buy' started by Jmillar, 2nd Feb, 2019.

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  1. Jmillar

    Jmillar Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    679
    Location:
    Sydney
    Hi All,

    Currently starting to learn the Perth market, so have been doing some basic research.

    Two suburbs which caught my eye were Lockridge and Eden Hill. One thing I like to do when looking at areas is look at the surrounding suburbs.
    Lockridge Investment Property Market Data

    If I look at these 2 suburbs on realestate.com.au’s invest link, it shows they dropped a lot more than most other areas since 2014 (Lockridge went from 395k to 292k (26% drop) and Eden Hill went from $497k to $380k (24% drop), whereas most surrounding areas only dropped 10-15%. Also, if I look at all the suburbs surrounding these areas, they have much higher median prices and lower yields. For eg Bassandean neighbours Eden Hill but only dropped 12%, has a median price $130k higher despite median rent being the same ($350k/week). Bassandean has a slightly higher crime rate too (4.8/100 compared to 4.7/100).

    I’m guessing these areas are cheaper than their surrounding areas for a good reason (ie lesser demographic), but it seems strange they dropped a lot further than everywhere around them. I’ve always liked areas with these fundamentals as it usually suggests that they have further to rebound.

    Keen to hear everyone's thoughts on why these areas dropped so much more compared to their neighbouring suburbs...


    Thanks!
     
  2. jenno1612

    jenno1612 Active Member

    Joined:
    12th Jul, 2018
    Posts:
    44
    Location:
    brisbane
    I havent lived in Perth since 2016. rented in bassendean and I looked in the area to buy and ended up deciding I wouldn't buy east of tonkin hwy. I ended up buying in Morley.

    lockridge and kiara used to both have not only a lot of housing commission but also both have 2 facilities for mentally ill offenders who cant be housed in the normal jail population. not sure if they are still there. but there was a lot of issues in the area

    Lockridge locals await answers from minister over Bennett Brook Disability Justice Centre - ABC News (Australian Broadcasting Corporation)
     
    JohnPropChat likes this.