If you compare the increase in value of investment property in Derby, 6728 to the rest of Australia, it performed poorly. The median increase in value, or capital gain property investors experienced for this WA suburb was -7.79%.
Across a shorter period, Derby, 6728 has seen a median price increase of 1.83% over the last quarter.
State is the most discounted Australian state or territory in this month’s figures with an average Vendor Discount of -5.44% offered to property buyers. Sellers in Derby itself are offering an average vendor discount of -16.87% to real estate investors.
On average over the past year, suburb has had 2.92 sales per month, which equates to 35 per year.
A $320 per week rent on the median house gives suburb investors a gross yield of circa 11.97%, without taking into account capital value appreciation, which has been averaging out at -7.04%.
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While the bulk of Western Australia’s recent successes on the property front have been in the Pilbara region, Kimberley has been making a name for itself of late, and Derby is most certainly one to watch there.
What it’s got going for it, says Crawford Realty sales consultant Morgan Crawford, is a whole slew of government and resource related projects that are in the pipeline.
“There are quite a few government projects that have been proposed – a new prison for example. And if you have a look at RP Data you’ll notice that the rental market has tightened up hugely, and rental prices have jumped up 10-15% in the last six months,” he says.
Fuelling this rental growth is an extremely low vacancy rate. In fact, Derby’s vacancy rate has been at 0% for more than two years according to SQM Research figures.
As well as the construction of the $150m Derby Regional Prison, Derby’s property market is expected to benefit from the expansion of the Kimberley diamond and iron ore mines on Koolan and Cockatoo Islands, the proposed $550m Deep Water Port Facility at Point Torment, the proposed Browse Basin Gas Project and resource giant Inpex's $25bn Ichthys LNG venture.