Sanctuary Waters, Mandurah WA

Population Demographics

Research: Population Demographics In the 2006 Census (held on 8th August 2006), there were 55 814 persons residing in the statistical local area of Mandurah (today it is approximately 65 000). 18.8% of the population were children aged between 0-14 years, and 34.5% were persons aged 55 years and over. The median age of persons in Mandurah was 43 years, compared with 37 years for persons in Australia. 35.6% were couple families with children.

In Mandurah, the median weekly individual income for persons aged 15 years and over was $384, compared with $466 in Australia. The median weekly household income was $810 compared with $1,027 in Australia and the median weekly family income was $1,038 compared with $1,171 in Australia. (2006 Census)

On 2006 Census night, 33.7% of occupied private dwellings were fully owned, 29.9% were being purchased and 26% were rented. Of those being rented, only 9.9% were rented from a State or Territory housing authority.

Schools

Only minutes from Sanctuary Waters Mandurah, there is a Community College or Middle School providing education for years 8 to 10 and a Private School for Kindergarten to Yr 12. In addition there is a huge range of public and private educational institutions in Mandurah providing education from pre-school to senior high school level.

Shopping

A convenience store is currently located minutes away from Sanctuary Waters Mandurah. Behind this store is vacant land zoned commercial and earmarked for a future neighbourhood shopping precinct.

Mandurah Forum, on the corner of Mandurah Rd and Pinjarra Rd is approximately 5 minutes away and Mandurah central business District is approximately 8 minutes away from the estate.

Future Amenities In The Locality

An Economic and Recreation Plan for the Peel Waterways was prepared by the Shire of Murray, the City of Mandurah, the W.A. Planning Commission and the Peel Development Commission approximately 10 years ago.

Specifically with regard to the locality of Sanctuary Waters Mandurah the plan says in part; “The …….. foreshore is the only beach on the open estuary north of the inlet channel, providing direct access for the City of Mandurah and the regional road network”

“This is another ‘end of road’ situation at an attractive regional location where there needs to be provision for adequate parking, public toilets and shade near the beach. The area appears to have a high potential for tourism development including …. Restaurants and the like.”

Since 2001 the Mandurah LGA has grown by almost 16 000 people at an average annual growth rate of 4.11%, more than double the growth rate of the Perth Metropolitan area (2.02%).

The population of Mandurah is forecast to grow by over 40 000 people between 2009 and 2026, which will create a significant demand for housing in the area.

Since July 2008 Mandurah has averaged 46 building approvals for new houses per month. Of the 32 council areas in the Perth/Peel region, Mandurah recorded the 8th highest average.

Population Growth for WA 2005 to 2031

 

Regions	Average annual growth rate
Peel	2.7%
Kimberly	2.5%
Metropolitan	1.3%
South West	1.2%
Wheatbelt	0.9%
Pilbara	0.7%
Goldfields – Esperance	0.6%
Great Southern	0.6%
Mid West	0.5%
Gascoyne	0.3%
Western Australia	1.3%
National Average	2.1%

Source: Department for Planning and Infrastructure (2005.) WA Tomorrow Population Report No. 6

The West Australian, Monday, 30 August 2010

Perth must make room for 500,000 new people.  Perth will be home to an extra 500,000 people in 20 years’ time, according to a planning blueprint out today which calls for more homes to be squeezed into existing suburbs.

The blueprint comes as a new activities centre policy, to be gazetted tomorrow, lifts long-held caps on the size of shopping centres in a bid for more Subiaco-style town centres with a mix of housing, education, entertainment and shopping.

The Peel area is expected to experience the biggest growth in housing from 38,000 to 64,000 dwellings and a population increase from 88,000 to 133,000.
The strategy provides for a more than doubling of jobs in the northern corridor, with similar big increases in the Peel and south-east metropolitan areas as the Government aims to reduce city transport congestion.

Independent Report

In a recent independent research document compiled by MacroPlan Australia it was reported that:

The Federal Budget has forecast a return to positive growth (2.25%) in the following financial year.

Following a 9 month period of national decline, the last 9 months has seen a 27.3% trend increase in the number of home loans. Western Australia is ahead of the national average with the second lowest unemployment rate in the country (behind Tasmania). In June, the unemployment rate for Western Australia increased to 5.1%, a 0.1% seasonally adjusted increase. This equates to approximately an additional 900 unemployed persons across the State.

(LGA) of Mandurah

Of the top five industries in the Mandurah LGA (Construction, Retail Trade, Manufacturing, Health Care and Social Assistance, and Education and Training) only Construction is expected to contract over the next five years to 2013/14. Health care and education are in fact predicted to have the greatest employment growth (3.0% and 2.4% per annum respectively).

Infrastructure projects of the Peel area:

$113.4 million for the construction of the Mandurah Entrance Road
$113 million on wastewater and water supply projects
$22 million to complete the Perth to Bunbury Highway
$5 million to finalise construction of Greenland’s Road to connect the Perth Bunbury Highway to the South West Highway
$3 million to construct the Marri Grove Primary School and the Pinjarra Early Childhood Centre

The City of Mandurah is well serviced with access to numerous facilities and services. These include pre-schools, 11 primary schools, 4 high schools, 3 combined schools and 4 specialist schools. The largest shopping centre is Centro Mandurah, a regional centre located in Mandurah; there is also a number of neighbourhood and main street shopping centres throughout the city.

The Mandurah to Perth rail line opened a year and a half ago. With the Perth to Bunbury highway open to commuting to and from Mandurah has and will continue to become easier and more accessible.

General Investment Commentary

The continued population growth of the Mandurah area and the relatively stable employment outlook suggests that there will be continued demand for owner/occupier residential dwelling products in the short term. Employment figures are a key to housing demand over the immediate short term. Of the region’s top employing industries (Construction, Retail Trade, Manufacturing, Health Care and Social Assistance and Education and Training) only construction is predicted to decline to 2013/14.

While median house prices have declined somewhat in recent months in line with the economic downturn, median prices in the area are still over $100,000 higher than they were at the start of 2004. It is unlikely that prices will fall much further.

Unlike the UK and US, the Australian housing market is not oversupplied. To this point in time, although slowing in terms of market activity, the housing market has remained largely unaffected by world events.

This presents a solid choice for interested parties considering the option of investing in Sanctuary Waters, with the area underpinned by strong population growth (driving continued demand) and what has proved to be substantial price resilience.
Source:  MacroPlan Australia

Sales Evidence

Vacant Land Statistics from August 2009 to July 2010,

Long Term Capital Growth Rates Coodanup V Perth
	HOUSES		UNITS
	Coodanup	Region	Coodanup	Region
Long Term Trend	13.8%	13.6%	SNR	14.3%
	Perth	Region	Perth	Region
Long Term Trend	10.7%	9.4%	10.0%	13.8%
*Based on sales reported to Australian Property Monitors Source: http://www.domain.com.au

 

RENTAL MARKET	JUNE QTR 2010
Vacancy Rate - Perth	4.3%
Vacancy Rate – Mandurah - Murray	3.8%

1. Median prices and sales of properties are derived from Landgate data – Excludes properties > 1Ha

2. Rental Data obtained from surveys of REIWA members

 

Cash flow Estimates

CASHFLOW ESTIMATES Sanctuary Waters Rent $340 (pw)
Purchase Price $365,000	Tax Bracket $30,001 - $85,000 (31.5%)	Tax Bracket $85,001 - $180,000 (41.5%)	Tax Bracket Over $180,000 (46.5%)85000
Tax saving (pw)	$154	$180	$210
Cost to you per (pw)	-$98	-$72	-$41

Based on 5% rental return and 7% interest only loan, the contents of this analysis are provided as a general guide only.

 

Rental Appraisal