Gosnells is the suburb keeping the great Australian dream alive

Over generations, Aussies have been driven to make sacrifices and diligently save for a deposit, all in pursuit of securing the keys to a place they can truly call their own — a sanctuary for family, pets, and treasured barbecues.

However, rising property prices and escalating economic pressures, particularly in the form of increased cost of living, have transformed this dream into a distant reality for many.

In 1966, about 73 per cent of Australians owned a home either outright or with a mortgage. However, the current rate stands at 63 per cent, according to a new report from AMP.

“The question is whether this decline reflects deteriorating housing affordability flowing from years of property booms, leading to a fading in the ‘Aussie dream’, which is centred on home ownership or whether it’s something deeper,” AMP Investments chief economist Shane Oliver stated.

“The natural inclination is to think that the fall in home ownership rate is all due to worsening affordability.”

However, Dr Oliver only partly attributed the falling home ownership rates to the significant deterioration in housing affordability since the 1990s.

While average home prices ranged around two to six times annual wages prior to the mid-1990s, it has steadily increased to around 14 times since then, he noted.

Similarly, the ratio of home prices to median household disposable income has “blown out” from around four times to eight times, Dr Oliver added.

While interest rates are still lower than it was in the 1980s and 1990s, this has been reflected in higher price-to-income ratios.

It is also taking longer for first home owners to save for a deposit to enter the property market — another measure of housing affordability.

For someone on average full-time earnings, it now takes around 10 years to save a 20 per cent deposit to buy an average property compared to around five years 30 years ago, Dr Oliver said.

Despite the grim scenario and the rising narrative that the great Australian dream is now dead, all hope is not lost for investors and home buyers determined to uphold this longstanding aspiration.

The suburb of Gosnells, located within the larger city of Gosnells, was recently identified as a top contender among numerous other suburbs in Western Australia, securing a coveted spot in the Smart Property Investment Fast 50 ranking for 2024.

Leveraging insights from a 14-strong investment expert panel and recent housing performance collected from open-source data, the Fast 50 report offers an unparalleled glimpse into Australian suburbs poised for future growth, providing valuable insights into their housing performance.

Situated approximately 20 kilometres south-east of Perth’s central business district, Gosnells offers residents a unique combination of urban convenience and natural beauty.

Bordered by the Canning River to the north and east, as well as the Wungong Brook and Southern River to the south, the city enjoys proximity to these stunning natural wonders while also providing access to bustling urban facilities and attractions.

Gosnells truly offers a well-rounded lifestyle with a plethora of activities and amenities to suit diverse interests.

Nature lovers can explore over 30 parks, reserves, and wetlands in the area, while fitness enthusiasts can enjoy the Harmony Fields Fitness Track for outdoor workouts.

Essential facilities include the Gosnells Railway Station, Gosnells Railway Markets, Foothills Shopping Centre, and Gosnells Shopping Centre. History enthusiasts can visit the City of Gosnells Museum, and there are schools like Gosnells Primary School and St Munchin’s Catholic School.

The area also provides recreational options such as tennis courts, skate parks, and a leisure centre. The Addie Mills Centre caters to seniors and people with disabilities, offering specialised programs and services.

Notably, the suburb of Gosnells is situated within a local government area (LGA) that has been labelled as an ugly duckling but holds all the potential to transform into a real estate swan in the future.

Bolstering the region’s prospect is the infrastructure pipeline that includes projects such as a $4 billion container port, a $1 billion hydrogen plant, $2.5 billion pencilled in for road upgrades, and a $4.3 billion shipbuilding project, with future infrastructure development projects earmarked by the federal government further encouraging business, industrial, and residential projects.

These projects are further supported by low vacancy rates and a recent uptick in sales activity, according to the report.

With a median price of $370,000, the market offers properties at an accessible price point, making it enticing for home buyers and investors alike.

For those seeking capital gains, the market has witnessed a substantial 12-month growth rate of 10.40 per cent, while the median quarterly growth stands at an impressive 2.80 per cent, showcasing a positive trend in property value appreciation.

Moreover, the average annual growth rate of 1.80 per cent further solidifies the potential for long-term returns on investment.

Lastly, Gosnell’s gross rental yield of 5.60 per cent and median rent of $400 per week present a promising opportunity for generating rental income, making it an attractive option for prospective landlords.

To find out which other regions made the Smart Property Investment Fast 2024 report, click here.

Tags:

• Australia property market news roundup
• Suburbs

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