The recently released Draft Local Housing Strategy produced by the City of Joondalup is a must read for first home buyers and investors according to Stuart Cox, Managing Director of the Peard Real Estate Group.
Mr Cox said that the draft housing strategy identified 10 locations in the City which provided the opportunity for redevelopment for higher density use.
"The Draft Housing Strategy estimates that an additional 13,000 new homes will be needed in the City of Joondalup by the year 2031 based on a population of 160,000.
"A key part of the Draft Housing Strategy is to increase the supply of houses through greater urban infill. These higher density homes will help cater for the projected increase in demand for higher density lots due to the declining size of families. Overall the draft strategy predicts that the average size of a household in the City of Joondalup will fall from 2.77 person in 2006 to 2.3 persons in 2031.
"A number of the 10 areas nominated for higher density in the City of Joondalup include parts of near city suburbs such as Warwick and Greenwood which are located close to public transport and commercial centres.
"These suburbs were developed around 40 years ago and original houses within these suburbs can therefore be nearly purchased a land value.
"The block sizes in these older near city suburbs are generally over 700sqm and the medium house price for both suburbs is only around $500,000.
"History shows that sub division approvals of older near city blocks results in a surge in property values beacuse the land become more value due to the fact that you can build multiple properties on these sites.
"The fact that both these suburbs are less than 20 kilometres from the Perth CBD means that any subdivision approvals for homes in these areas will increase the value of the land in these areas especially as the size of the Perth metropolitan area increases.
"The likelihood that home sites in these older near city areas will be subdivided is even more likely due to the recent release of the State Government report "Directions 2031 and Beyond." This report would allow for 47% of additional housing over the next 20 years to be urban infill and consolidation projects.
"During recent months the Draft Housing Strategy in Joondalup has gone through a public consultation process and this feedback from the community will now be considered by the Council.
"However, anyone who is considering buying a home in the City of Joondalup would be well advised to read the strategy report and the potential it offers for people wanting to take a long term approach to the property market. The 90 page report also contains detailed demographic information about the City of Joondalup which gives property buyers and investors and invaluable insight into future housing needs for the area," he said.
The Joondalup Draft Housing Strategy can be downloaded online at http://www.joondalup.wa.gov.au/Develop/DraftLocalHousingStrategy.aspx