Welcome to our series ‘Hot Locations’. Over time we are reviewing very good real estate locations across Australia.  In this edition we are reviewing the Subiaco Redevelopment Authority in Perth, Western Australia.

The Subiaco Redevelopment Authority (SRA) was formed by an Act of Parliament in 1994 to revitalise 80 hectares of underutilised land. The SRA is responsible for all aspects of the revitalisation, from master planning, to development, investment attraction and community development.

The SRA has established a reputation as one of Australia’s most successful and highly-awarded creators of inner city communities. They employ some of Australia’s leading planning and design minds to deliver the best in urban renewal. Subi Centro has become a leading urban regeneration project internationally, winning numerous awards and attracting significant investment.

See an aerial photograph of the Subiaco Redevelopment Area in 1996 prior to development.

Check out some background information below:

• SRA Act and Scheme
• Subiaco Centro Design
• Subiaco Centro Precincts.  Today, Subi Centro includes these precincts – Subiaco Rise, Subiaco Gardens, Subiaco Square, Subiaco Park, Centro Avenue, Centro Place, Centro North and Australian Fine China.

Subiaco Hot Location

The Subiaco Redevelopment Authority has created an outstanding high quality development precinct in Perth, Western Australia.

Fundamental questions need to be asked as to whether the SRA achieved its objectives for sound economic development.  This could be measured by review of suburb profile reports, median price growth over time and demographic population growth over time.

Suburb Profile Report and Median Price Growth Over Time.

RP Data Subiaco Suburb Profile click here ( Suburb Only)

The RP Data Suburb Report states that

“The size of Subiaco is approximately 3 km².  It has 5 parks covering nearly 8% of the total area.  There are 3 schools and 3 childcare centres located in Subiaco. The population of Subiaco in 2001 was 6,646 people.  By 2006 the population was 7,644 showing a population growth of 15% in the area during that time. The predominant age group in Subiaco is 20 – 29 years. ”

“Households in Subiaco are primarily sole parent and are likely to be repaying over $2000.00 per month on mortgage repayments. In general, people in Subiaco work in a professional occupation. In 2001, 46% of the homes in Subiaco were owner-occupied compared with 53% in 2006. ”

“ Currently the median sale price of houses in the area is $1,442,000. “  (? this differs to the REIWA median price below)

Real Estate Institute of Western Australia (REIWA) Subiaco Suburb Profile Click Here

The Median House Price Chart indicates that Subiaco prices peaked in 2007 and then dropped by approximately $100,000 median price in 2008 and a further drop of approximately $30,000 to $40,000 median price in 2009.

The Long Term Growth Chart (average annual growth over 10 years) indicates that the suburb growth rate was 1.4% to 0.6% higher than the Perth median growth rate over 5 to 10 years respectively.  So Subiaco was a superior performing suburb during this period of time.  However the 1 year average annual growth rate for Subiaco was -0.9% and for the Perth Metropolitan Region was 3%.

The median house price for Subiaco for 31 Dec 2009 was $1,160,000

Demographic and Population Growth Over Time

See the following links to Australian Burea of Statistics (ABS) Census Community Profile Series : Subiaco (C) (Local Government Area)

• 2006 Census Community Profile Series : Subiaco (C) (Local Government Area) (NB this is the LGA of Subiaco)

Check out the Time Series Profile to assess the statistical changes over time between the census in 1996, 2001 and 2006.

Redevelopment in Subiaco occured from 1997 onwards so this ABS Census Data is very interesting.

The median household income growth between 1996 and 2006 was 88% compared to the median housing loan repayment growth between 1996 and 2006 was 73%.  Based on this very simple comparison it appears that affordability has improved by 14% during this time.

However a closer assessment of affordability should be carried out to gain a better insight into this issue.  The Census 2006 Basic Community Profile for Subiaco could offer some more detailed information about gross household income. See Gross Family Income by Family Composition chart B26 and see Housing Loan Repayment by Dwelling Structure chart B33 for specific details.

Population Growth

Persons aged 15 years and over in 1996 was 12,757, in 2001 was 12,992 and in 2006 was 14,374.  An  increase of  1617 (12.6%)

See The City of Subiaco Community Profile (on profile id) click here, which states that the Estimated Resident Population (ERP) Current Population as at 30 June 2009: 18,625. Change from previous year: +2.54% (NB this is an estimate and all of suburb population count)

Summary

The objectives of specialised Local Government Authorities like the Subiaco Redevelopment Authority is to create economic growth over time.

On one level the statistics indicated that the median household income growth between 1996 and 2006 was 88% compared to the median housing loan repayment growth between 1996 and 2006 was 73%.  One might deduce that higher income families and individuals have been attracted to the area.

20% (355 of 1731) of couples with no children earn $3000 or more per week and 27.8%  (370 of 1329) of couples with children earn $3000 or more per week in 2006.  That is 20% of the total population earn $3000 or more per week (or $150,000 pa). (See chart B26) 

The population over 15 years of age increased by 12% (1617 persons) between 1996 and 2006. This population growth would assist to increase demand for housing and satisfy the SRA planned supply of new housing.

Between 1996 and 2007 the suburb of Subiaco median house price demonstrated good growth and outstripped the Perth Metro Region median growth rate.  The median price peaked in 2007 and dropped in 2008 and 2009.  This could be a reflection of the unsustainable real estate growth demonstrated in the preceding years and the market correcting itself in line with affordability, supply and demand.

Future Reviews

Keep your eye out for future Hot Location reviews.  We will select locations Australia wide and conduct an analysis of economic and real estate growth.

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