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You're offer is still reasonable. If you were keen to purchase it's still worth writing up an offer even after the agent has says that. The vendor could change their mind once they have an offer.

This article may be of interest to you. http://mobile.abc.net.au/news/2014-08-02/parents-opting-for-top-indepentent-public-schools-in-perth-wa/5641440 How much are houses? What is the crime rate? I did consider purchasing an investment there about 7 years ago after recognising it...