OVER THE NEXT FEW MONTHS THE UDIA INTELLIGENCE UNIT WILL TAKE A CLOSER LOOK AT A NUMBER OF NEW DWELLING HOTSPOTS AND FIRST ON THE LIST IS NONE OTHER THAN THE LAND DEVELOPMENT MECCA, BALDIVIS.
Recent figures from RP Data showed that Baldivis recorded 936 land sales last year, far outstripping land markets in the rest of Australia. And this wasn’t the only list that Baldivis topped in 2012.
Baldivis has quickly become home to more first home buyers than any other suburb in Western Australia. According to First Home Owner Grant figures, Baldivis increased from being the 14th most popular suburb in 2006 to 1st in 2010; remaining in this position ever since. One in 33 first home buyers in Western Australia bought in Baldivis in the eight months to February, 2013 (367 in total).
A family friendly suburb
Let’s have a look at the demographics of Baldivis, referring to the 2011 Census of Population and Housing.
Key stats (2011 Census) | Baldivis | Perth |
---|---|---|
Population | 15,883 | 1,728,867 |
Occupied private dwellings | 5,114 | 627,096 |
Median age | 29 | 36 |
Median household income (weekly) | $1,931 | $1,459 |
Average household size | 3.00 | 2.55 |
Proportion detached houses | 96.8% | 78.6% |
Unemployment rate | 4.1% | 4.8% |
Participation rate | 73.6% | 64.5% |
Lived at same address five years ago | 28.4% | 54.2% |
A household in Baldivis most likely moved from a different suburb in Western Australia in the last five years, is a couple family with children (54.7 per cent), has two motor vehicles (50.5 per cent), and owns their residence with a mortgage (62.8 per cent).
A Baldivis household is likely to have one full-time and one part-time worker, with the most popular occupation being ‘technician and trades worker’ (21.4 per cent), followed by ‘clerical and administrative worker’ (15.6 per cent). The higher proportion of younger working families means the median household income is much higher (32.4 per cent) than the Perth median.
Larger blocks and homes
The Baldivis region is home to over ten separate land developments, and is consistently ranked first for land subdivisions with 8.5 per cent of all Perth final subdivisions occurring in its borders.
And these blocks in Baldivis are larger than in most developments. The median new block size in 2012 was 495m2 in Baldivis compared to the Perth median of 445m2, according to preliminary settlements data.
New vacant block | 1st quartile | Median | 3rd quartile |
---|---|---|---|
Land size (m2) | 380 | 495 | 571 |
Land price | $165,000 | $179,500 | $198,000 |
These large blocks have allowed residents to build bigger homes, with 73.6 per cent of detached houses in Baldivis having four bedrooms compared to the Perth rate of 46.6 per cent. (The average floor space of houses sold in the last five years in Baldivis was 201m2.)
High levels of competition pushed block prices lower in 2012. According to preliminary settlements figures, two-thirds of vacant lots sold in 2012 were less than $200,000 in Baldivis. Considering that the average house approved was estimated to be $200,300 in 2012, the typical house and land package in Baldivis is estimated to come in at $380,000 – more than $100,000 less than the Perth median price and $50,000 less than the median established house price in Baldivis.
Not just first and second home buyers
Baldivis also attracts investors seeking to capitalise on strong rents and relatively affordable house and land packages. According to the latest Census, one in five households in Baldivis was renting.
Baldivis | |
---|---|
Proportion renting | 20% |
Median house rent (2012) | $430 |
Median house price (2012) | $430,000 |
Indicative gross yield | 5.2% |
Whilst the northern corridor is still a major area for land development (the City of Wanneroo was the most active local authority in Perth with 30 per cent of metro sales in 2012), the southern corridor is gaining prominence as a land development destination, driven by some big numbers in Baldivis. The Institute surveyed 15 land developments in the City of Rockingham and sales volumes increased 93 per cent over the December quarter, pushing 2012 sales levels up 45.5 per cent on 2011 levels. And developers are confident sales volumes in the fast growing Baldivis region will continue to improve, with a fifth of all lot construction in Perth expected to be within the City of Rockingham’s boundaries.