With its prime location in WA's Swan Valley wine region, just 30 minutes from Perth's CBD, the new suburb of Avely has a lot to offer investors.
Recognised as a suburb in its own right since September 2006, the 537 hectare site - which was once part of neighbouring Ellenbrook - is in the process of being transformed into the attractive new Vale community by developer Multiplex.
Work began on the site in March 2004, and in excess of 1,000 lots have been sold to date. Available product is a mix of land-only, house and land packages and completed homes, with work expected to conclude in 2014.
"Aveley is an extension of the Ellenbrook estate which started some 15 years ago," explains Rob Druitt, president of the Real Estate Institute of WA (REIWA). "Now that Ellenbrook is in its final stages, Aveley is well positioned to take over demand in the area for new homes, particularly with the Swan Valley region predicted to double in population over the next 15 years."
Location, location, location
Adjacent to the Vines Golf Resort and with close access to over 40 wineries, 80 restaurants and several boutique breweries, cafes, museums and galleries, it's easy to understand the area's appeal.
On completion, Aveley's 15,000 residents and 5,000 homes will be served by the suburb's own schools, shops, retirement villages and childcare facilities, among other amenities.
The Vale community also has a strong eco-friendly focus, with emphasis on natural asset preservation and re-use of materials on-site. Almost 25% of the subdivision's total area has been set aside for conservation and public open space, and these efforts were recognised in September when Vale received the Environmental Excellence award at the 2007 Urban Development Institute of Australia (WA) Awards for Excellence.
But with only around 500 people currently living in the community and 3-400 houses presently under construction, there's still a long way to go - though investors might be advised to get in early.
Armando Rossi, general manager for Multiplex WA says property sales on Vale have been very strong. "This time last year we couldn't get the product out of the ground fast enough. We're still moving strongly now; there seems to have been a bit of a slow down Australia-wide, but Vale's still performing well."
The figures certainly say so: the average Vale house plot was selling for around $100,000 three years ago, while an equivalent sized piece of land is now priced in the region of $270-280,000.
Not surprisingly, Rossi is confident that Aveley investors won't be disappointed with their choice. "We make sure we protect the investment of the purchaser," he says. "We've always tried to make sure that the next cab off the rank sees it as an opportunity to buy and make some profit as well. The last thing we want to do is have a situation where you drop your price. We always try and factor in growth for the purchaser."
And while WA's boom period has come and gone, the future certainly looks bright for Aveley.
"Being a new suburb there is not a price growth history, however the performance of neighbouring Ellenbrook would be a good indicator," says Druitt. "Ellenbrook has been a great success story for a satellite suburb. The last five years have seen a growth rate of 21% per annum and a very steady 12.4% growth over the past 10 years." Growth of 25.3% has also been recorded for the 12 months to June, suggesting a bright future for the region.
Meanwhile, REIWA predicts growth of 8-10% per annum for Perth overall during the next five years. "This is a more modest but sustainable rate of growth than we have seen due to affordability pressures," says Druitt, who points out that Perth is now second only to Sydney in the median house price stakes. "Aveley is likely to perform well over the next five years as new homes are built and the benefits of new facilities and amenities flow through to the community," he adds.
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