Investing in Lakefront Properties Vs Non-Lakefront Properties

[Kennethkohsg]

Dear All,

1. From my own personal observations at the Anchorage Estate from 2003 to 2007, it seems that during the last Perth property boom time in 2006, a lakefront property with full water views is able to command a A$20,000-$50,000 premium over another comparable non-lakefront property.

2. However, the A$20,000-$50,000 premium for lakefront properties with full waterfront views, does not seems to hold up well during the present slow "stagnant"/"declining" property market condition;- in that both lakefront and non-lakefront properties seems to be commanding the same market price though it is taken that the lake-front property can sell quicker as compared to a non-lakefront property, all other things being equal.

3. I wonder if this is indeed the case too for other similar lakefront properties in other suburbs in WA or/and in other Australian States.

4. If so, what happens to the existing price premium presently being enjoyed for lakefront vacant land lots with full water views and non-lakefront vacant land lots? Are the lakefront vacant land lots likely to lose their water views premium in the same slow "stagnant"/"declining" perth market conditions too?

5. What have been your personal observations and experiences with respect to
a. lakefront vs non-lakefront properties,
b. riverfront vs non-riverfront properties
c. ocean-front vs non-ocean front properties.

6. Looking forward to be further educated abd learning more about regarding the waterfront vis non waterfront properties property investing outcomes, please.

7. Thank you.

regards,
Kenneth KOH

 

[quoll]

Ocean front

Investing near the coast.

I can really only comment on Ocean front.

If the average/median is around $300 for the burb, then 1 street back might be $400-$600k and ocean front is $600-900k.

Land with shack,
1km back $250k
1 street back $350k/$400k
ocean front $550k/$600k

rough guide / observation.

but substantial difference between land value. Back in 98 we looked at blocks 750m2 1 street back $40k compared to on ocean front $80k. The percentage seems to stay similar but $$ change.

cheers
quoll

 

[Ausprop]

I know in Old Dunsborough the beach front homes are $6m and the ones immediately behind are $3m. They track at 50% of the ones in front. The blocks then drop by a good $100k in value as you move back from the front.

I think the argument for coastal and river views is clear. As for a man made lake in a middle income suburb, I should have thought there would be a premium still. What exact blocks are you basing your information on? I recently helped someone secure 5 Zaraffa which is a few doors off of the lake at a price far less than the $550k they are asking for the lake front homes, but then again the lakefront ones are townhouses

 

[Kennethkohsg]

Dear Ausprop,

1. Both Ventura Homes and Pt Bouvard Homes are presently marketing off the plan, one of their lakefront land lots, (which is located along the Waterfront Parkway) together with a single-storey 4 x 2 house to be built, as their house and land package for, around
A$475,000-A$480,000 price range.

2. The house to be built by Ventura Homes, is known to be a small one, at around 175m2 living. In the mean time, I am still awaiting to receive the proposed house drawing plans from Pt Bouvard Builders.

3. Using the house pricing marketing data provided by Ventura Homes, the same piece of lakefront land lot (315 m2) along the Waterfront Parkway, which was used to be sold for A$299,000 in Jan-Feb 2007 period, is now being marketed for A$275,000, under the existing house and land package pricing system.

4. Some of the non-lakefront vacant land lots in the Anchorage Estate are presently also, being advertised with an asking price at around this or at higher price range, though land sizes for some of these non-lakefront lands may be slightly bigger in size.

5. I further observed that the 4 x 2 single-storey house at 8 Olympic Place, Rockingham, which was built by Dale Alcock Homes, only managed to sell for A$500,000 on 6th Sep 2007.

6. Asking price for similar lakefront house for 16 Olympic Place has similarly been reduced from A$549,000 to A$525,000 recently, together with other lakefront houses at Rothbury Parade/Swift Court/Rhapsody Close related areas at the same Rockingham part of the Anchorage Estate too.

7. Thus, there seems to be no longer the same A$20,000-A$50,000 price premium, which is used to be enjoyed by lakefront properties during the boom times during 2006 as compared to their non lakefront properties.

8. The only premium left now for lakefront properties, seems to be that for the same price, the lakefront properties are likely to take slightly shorter time to sell as compared to non-lakefront properties.

9. For your kind update and further comments/discussion, please.

10. Thank you.

regards,
Kenneth KOH