Interest from investors has really picked up in Sienna Wood, so here are some questions we're fielding and the answers to help you on your way.
Naturally we think Sienna Wood is the bee’s knees for buyers, investors and owner-occupiers alike. But the stats and a recent report by our friends at Urbis nicely supports our endorsement!
We’ve compiled a list of questions that smart investors might consider when they look at this community (which spreads across Hilbert and Haynes), and share insights from the Urbis report.
1. What’s the rental yield look like and how’s it compare?
Investors from interstate are looking to WA because of building affordability - the median house price in Perth is between 43% and 143% lower when compared to Sydney, Melbourne and Brisbane.
Hilbert and Haynes are even better again, with the median house price sitting approximately 80% of the Perth-wide median.
But the important factor isn’t just how much it costs, it's the potential yield. As at September 2022 Hilbert recorded a yield of 5.8% and 6% In Haynes.
To put that in perspective, this suggests by paying about 80% of the average house price you could receive 95% of the average yield – not bad!
2. Will demand continue into the future?
One of the biggest signals for future demand is population growth. With vacancies the way they stand now it’s undeniable that we’re in for a tough time to meet this demand as Perth grows.
Between 2021 and 2041, the population for the City of Armadale is forecast to increase by 54,191 persons (55.46% growth), at an average annual change of 2.23%.
Haynes and Hilbert are a sweet little pocket of that area, with an average annual growth predicted of 7.45% and 6.56% respectively.
3. Will there be infrastructure and amenities to support the demand?
Sienna Wood is a well-established community with schools, shopping centres and parks with much-loved playgrounds close by - you’ve heard of Shipwreck Park, right? There’s plenty more to come as the area grows, including a massive town centre planned for the middle of Sienna Wood.
By purchasing now, property owners could piggyback off that growth of the area as it becomes even better, rather than paying a premium for a completed community down the line.
4. Is now the right time?
There are a handful of titled lots ready to build on right away, plus builders are beginning to offer fixed price contracts or build time guarantees as supplies of products free up and labour shortages improve, too.
Plus, prices are already growing and investors are already here. Hilbert grew 8.7% last year and Haynes 6.2%. This pocket exceeds the broader City of Armadale at 3.6% and greater Perth at 2.9%. Well done, Sienna Wood!
Proactive investors are noting this growth and they’re already showing interest, before the crowds rush in and prices escalate.
5. Should I build? Or buy established?
Established properties are hard to come by in Perth, let alone good ones. With the pent-up demand for trades only starting to dissipate, a lot of these homes need a bit of attention or are waiting for their new buyer to spend up big on much-needed maintenance.
Building means everything’s shiny and new! With warranties! And guarantees! And did we mention depreciation opportunities? Chat to your accountant about that one!
Still have questions?
You can download the full report from Urbis here.
Or if you’d like to have a chat, our sales professionals are full bottle on the whole area as well as the Sienna Wood community. We can even put you in touch with the best builders in Perth to answer any questions on that side.
Give us a call, pop into our Sales and Information Centre, or leave us a message and we’ll get back to you.
Information sourced from Market Outlook: Hilbert and Haynes (Feb 2023). Full Report available here. This document is supplied for the purpose of providing an impression of Stockland Sienna Wood and the approximate location of existing and proposed third party infrastructure, facilities, amenities, services and destinations, and is not intended to be used for any other purpose. All details, images and statements are based on the intention of, and information available to, Stockland as at the time of publication (April 2023) and may change due to future circumstances. This document is not legally binding on Stockland. Stockland does not give any warranty in relation to any information contained in this document. Stockland does not accept any liability for loss or damage arising as a result of any reliance on this document or its contents. Prospective purchasers should seek their own independent legal and financial advice.