Blue skies for investors who bet on WA’s Greenfields
A lakeside suburb in WA’s Mandurah region boasts an affordable entry point coupled with enticing lifestyle selling points that offer a great opportunity for investors with a long-term view.
Based near the Peel-Harvey Estuary, known for its abundant wildlife and migratory birds, this suburb offers plenty of reasons for investors to flock.
Located in the southwest coastal region of Mandurah in Western Australia, Greenfields is located alongside the scenic Peel Inlet and Goegrup Lake Nature Reserve, and has become highly sought-after for its waterside charm.
Greenfields provides easy access to the beach, fishing spots and water sports, which is a drawcard for potential tenants. For investors, the up-and-coming development of the suburb coupled with Greenfields’ relatively affordable price makes it ripe for current and future growth potential.
In fact, the suburb was recently named in the highly coveted Smart Property Investment FAST 50 ranking for 2024.
The report and ranking combines the insights of a 14-strong investment expert panel and recent housing performance drawn from open-source data, and aims to give unparalleled insight into the Australian suburbs that are set for future growth.
A number of Mandurah locales has made the list, including the region’s namesake suburb. In Greenfields, buyers find great bang for buck with excellent nearby access to both a bustling town hub and the quietude of nature, all contained in what might be described as a classic Australian suburb.
Largely dominated by freestanding homes as opposed to units, the neighbourhood houses approximately 9,869 people as of the 2021 census, with 4,628 dwellings currently existing to accommodate this population. That’s expected to grow with development sites coming onto the market as density increases in this waterfront enclave.
In the 12 months to January 2023, property prices in the region soared 14.1 per cent, far exceeding the normal average growth of 2.6 per cent and median quarterly growth of 1.4 per cent.
During that same period, 321 properties were sold, with the region’s median price being approximately $365,000. Gross rental yields in Greenfields are around 6.4 per cent, while landlords could collect median rents of around $450.
And just under an hour by car to Perth, the location has been gaining attention in recent years for its proximity to the city yet offering lifestyle options that are hard to come by any closer to the capital – with access to the beach, natural environment and all the amenities of waterside living.
Indeed, there’s a reason why Mandurah has become known as the Little Venice of Western Australia. The area’s waterways and canals make for a popular retreat from nearby central business districts and make for a number of interesting housing options for short- and long-term living.
Yet for workers, the ease of access to Perth means that the semi-frequent commuter is never too far away. It’s exactly what the scores of Australians who made moves to regional locales over the course of the past few years have been looking for.
With remote work becoming suddenly much more prevalent as a result of the COVID-19 pandemic, causing many Australins to reevaluate what they wanted from their homes, regional locations see a sudden upswing in interest from so called sea changers and tree changers who have grown tired of the city.
Mandurah’s regional area is high on the list for those making moves in WA, and price data reflects that. While the average price for a home in Greenfields two years ago stood around the $215,000 mark, it is now worth approximately $100,000 more.
As a relatively small area, it can be hard to find available stock, but new developments should loosen the market while landlords who get in benefit from Greenfield’s long-term appeal and often have tenants that stay for an above-average tenure.
Because unlike the migratory birds, residents who settle in Greenfields aren’t likely to leave anytime soon – there are too many reasons to enjoy calling the area home.