It has often been the case that when a particular suburb becomes sought after, the neighbouring suburbs benefit. Like a pebble dropped in the water, a ripple is created which expands outward. This means people are often pushed 1-2 suburbs out from where they wanted to initially be. This creates a knock on effect. Slowly people are forced further and further out, following the ripple. In the case of the greater Midland area, as many as 6 ripples converge here.
Given the areas’ proximity to arterial routes, industrial estates and the airport, it provides easy access to navigate the city and a short commute to employment outlets. On top of this, it is only 17km to the CBD.
As an end terminus in the rail network, Midland Train station is now the third largest in WA following its redevelopment. Commuters can be in Perth in 26 minutes. The station is not only part of the TransPerth network with a bus/train interchange, it is also a stop for the Prospector (Kalgoorlie) and Avon Link TransWA networks.
St John of God Midland employs a huge number of medical professionals, as well as the conversion of the old train manufacturing sheds into medical affiliate suites to compliment the care provided at the hospital. With a surge of elite professionals entering the area, this can only be a good thing.
Midland is ‘town’ for those who reside in the surrounding hills and the farmers through the Wheatbelt. Aside from agricultural & machinery stores, it is the place many come for their ‘big shop’. Harvey Norman and all the usual suspects are present in the area, with may following suit. Midland Gate shopping centre is huge, featuring a newly re-branded Hoytz cinema. The area is fast being gentrified and is the Osborne Park of the east.
Sitting on the doorstep of the Swan Valley wine region, Midland is also close to the Perth Hills wine region & orchards, as well as the national parks through the eastern hills – it is an outdoor lovers dream.
At the time of composition the median house price in Perth is $1.075m, with a median rent of $700 per week. This works out to a yield of 5.6%. By contrast, the average house in Middle Swan would have a 6.0% return from a $680k purchase price.
Compared to the Perth average, this a 7% better return for a 37% lower investment.
The value of properties in Middle Swan have increased by 225% in the last 5 years – That is not a typo!
On average, property values in the 6056 postcocde have increased by 211% in the past 5 years. In the same time rents have increased by 190%. Despite the growth, these are still considered modest figures for buyers and
tenants, by Perth standards. Rents in the postcode are up 18% in the last 12 months.
Collating the data for the 10 suburbs which make up the 6056 postcode, an average purchase price of $786k would provide an averaged yield of 5.88%.
For a similar spend a house in Alkimos (40km north of the CBD) a house for $790k would provide a 5.6% yield.Although coastal, it is twice as far from town as Midland, meaning unforgiving commutes trapped on the freeway. In the past 12 months rent have only risen here by 3%.
Looking to other suburbs over the past 12 months, rent in Ellenbrook is up by 1.3%, rent in Mandurah +5.8%, Fremantle +9% and Subiaco +14.3%. The performance of 6056 really speaks for itself.
With more upgrades and investment coming to the area, prices surging in neighbouring suburbs driving more and more people to the area coupled with ‘below average’ pricing , there is still a lot of opportunity for further growth out here.
The only question is, will you be benefitting from it?