East Perth’s enclave of Claisebrook has emerged as a model for suburban rejuvenation, with sales figures over the 20-plus years since the redevelopment was launched indicating strong demand and solid returns for investors.
Analysis of sales in the area by research firm PropertyESP showed that, since 1992, there were 11,472 sales across 6,138 properties, with 20 per cent of those properties selling three or four times.
PropertyESP managing director Samantha Reece said those that sold in the first year since purchase achieved the best capital gains, of 13 per cent per annum.
In the second year, capital growth was 12 per cent per year, while it dipped to 6 per cent per year in the seventh year of ownership.
Ms Reece said redevelopment had resulted in accelerated population growth, which rose 9 per cent between 2001 and 2006, and 41 per cent from 2006 to 2011.
“There were also 15 per cent more professionals in East Perth in 2011 than the Perth average, and we have seen weekly household income levels treble,” Ms Reece said.
Those statistics, Ms Reece said, established the East Perth-Claisebrook area as a model to follow for other Perth redevelopment locations, including The Springs, Northbridge and Cambridge.
“Typically these areas, once transformed, will reflect a more educated population with higher income levels; this is excellent news for businesses and councils alike, which are considering rejuvenation of their suburbs,” Ms Reece said.
“But the churn of properties in East Perth also indicates that it is important to consider the range of supporting amenities and facilities.
“If we really want to create sustainable communities then residents need to have more than three or four choices of restaurants and so forth, so the area stays vibrant and residents maximise the walkability of these catchments.
“This also places a level of responsibility on to the businesses in these locales, to continually evolve their services and offerings to capture the bulk of local trade.
“The overarching story, though, is that infill offers many benefits to Perth.”
