Proposed rezoning to boost prices
A plan to double a local government area’s population in less than two decades could see property prices soar in various suburbs.
The City of Swan in Western Australia has developed an Urban Housing Strategy (UHS) in response to the state government’s Directions 2031 and Beyond report, which outlines a potential doubling of the city’s population by 2031 and anticipates an additional 35,510 dwellings.
According to the local government the new dwellings could be accommodated in the city’s expanding urban growth areas as greenfield development, however, increasing the opportunities for infill development within the city’s established areas will provide much needed housing for residents who prefer to live in established areas.
“The key component of the UHS is its Infill Housing Strategy which introduces a Dual Residential Code and five new design criteria,” according to the City of Swan.
David Whait from Property Wizards told Smart Property Investment that buyers who aren’t afraid to do their due diligence and invest in a proposed rezoning area could find potential in the City of Swan suburb of Beechboro.
“Beechboro is in the City of Swan’s proposed rezoning area. Once the proposed changes are approved, increases in buyer activity and decreased availability of development sites should push prices up,” he said.
“The suburb is 12 kilometres from Perth’s CBD and close to Morley, where development site prices have increased. Beechboro offers a cheaper alternative for future development without much additional distance.”
Investors should search for properties close to Morley with access to bus routes, schools and shopping centres, he said.
Mr Whait cautioned that despite the area’s potential, investors must be diligent as not all properties offered subdivision potential.
“Proposed rezoning is dual-density coded and the council has strict rules,” he said. “The council has also not released its design policy, so there is some risk involved in understanding building requirements,” he said.
Figures from RP Data show the median house price in Morley in September was $554,000 with a median weekly rent of $450 and an average gross rental yield of 4.2 per cent. Beechboro was comparatively more affordable with a median house price of $441,500, median weekly rent of $420 and a rental yield of 4.9 per cent.
For more expert tips on where you could experience rapid capital growth, look out for the December issue of Smart Property Investment, hitting news-stands on Thursday 30 October, or subscribe here.
