Cloverdale, Kewdale and Belmont

[aramz]

Hey guys,

Just wanted to grab your thoughts on these three suburbs. There has been heaps of action in this area lately. Not far from the city, swan river and the airport. Places like Rivervale and Vic Park have gone nuts, especially with development blocks. Also in the 3 suburbs listed above large R40 R50 and R100 blocks are snapped up within days or mostly gone before they are put on the net. There seems to be a lot of building going on right now and in a years time all those development blocks will be full steam ahead and churning out 3x2 villas, town houses and 2x2/2x1 apartments. I like this areas growth prospects but do you think in 2 years time there could be a big oversupply of these types of dwellings?

I was thinking of land banking a large R40 block and then possibly developing it in 2/3 years time when I have built up more equity. Wondering how resale of townhouses etc would go in this market in a few years time and whether or not the area could absorb all the new oncoming development.

Anyone have any thoughts on this area?

Cheers

 

[westminster]

You are correct, if they all develop now then there will be a glut.

Many other suburbs have been through the same thing. About 18mths a go there was a massive glut in Westminster/Nollamara of all the recently developed units. But now 18mths later there is nothing - and the development blocks are hot again

If you develop outside of the ups and downs you can be onto a winner. When there is a glut and no one wants to build I think this is the time to do it You aren't fighting for trades and build times are quicker.

 

[HD_ACE]

hi there

You are right with these areas being popular. For the obvious reasons. I think you will find there is alot of developments completed and underway. This is because its popular area and they are selling well. which is probably helped by the state of the market atm.

If you look more closely you will probably find alot of the development sites are being bought for landbanking aswell as you intend to do, which is a good strategy if you time it right as westminister has described above. This is important if you plan to sell on completion, not so important if your planning to keep and rent.

I have recently purchased in this area with a view to develop early next year. l plan not be selling so timing wont be as important.

If you can develop and hold or hold the development site for longer you will be much better off incase there is an over supply. i personally think there will still be a strong demand for this area in the future which will help with an oversupply.

hope this helps

cheers

 

[aramz]

I too think this area is very hot atm and for a good reason. If you look at bayswater, maylands and rivervale where large development block go for a fair bit more you can see some revaluing ahead for the other suburbs close buy.

Rivervale and Bayswater have had some good rises recently, development blocks and townhouses. Due you anticipate these areas to keep increasing a fair bit over the next 2/3 years also?

Thanks for your thoughts