With news that construction for Airport Link has commenced, now just might be the time to take advantage of the residential developments in the suburbs in and around the Airport Link route, such as Forrestfield, Belmont, High Wycombe, Maida Vale, and Bayswater.
There are many benefits of investing in properties close to new transport infrastructure and amenities such as train stations, or within transit-oriented developments, including:
Strong capital growth
Using the similar scenario in Sydney for comparison, The Transit and Urban Renewal Value Creation report revealed that Sydney houses located between 800 metres and 1600 metres from a train station are boosted 0.3% in value, homes between 400 metres and 800 metres away receive an increase of 1.3% on land value, and homes under 400 metres away enjoy 4.5% premium in land value on average.
Increased demand for tenancy
The convenience of being near a train station for commuting to work or school or social/sporting/entertainment events is not only attractive to potential tenants, but the increased desirability means potentially increased rental yield.
If you plan to purchase property for subdividing, the proposed rezoning could help, but it’s important to understand the rezoning rules and criteria for subdividing. Check with the local council for updates. For example, some investors bought into Forrestfield and surrounds in anticipation of the proposed rezoning coming through, only to find that they will not be allowed to subdivide on most blocks under 1,000sqm.
What to consider
It’s important to look around similar areas around Perth undergoing infrastructure transformations for comparison, and consider what your property goals are. Do you want to focus on strong capital growth or high rental yield? Do you want to add value through subdivision? Or is it a combination of these strategies?
To learn more about the benefits of investing near transport infrastructure or in and around a transit-oriented developments, and what you need to consider, why not complete our Getting Started form.
And, if you’re already contemplating how to tackle the property market in Perth, why not download our free Get Ready to Invest in Property eBook here.
We think you’ll find it invaluable.