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Caution required when investing in this booming suburb

Friday, 1st Aug 2014

KONICA MINOLTA DIGITAL CAMERA

Rivervale is located on the Swan River, 5km from the Perth CBD and part of the City of Belmont.

It is predominantly a residential suburb with a commercial area along Great Eastern Highway, which is the main road linking Rivervale with the City and the airport.

Rivervale was predominantly developed in the post-war years but today its housing stock is a veritable mix of older houses on full blocks and recently developed townhouses and villas. Apartments also dominate the area to the north of Great Eastern Highway.

Currently the median house price is around $600,000 and the median unit price is $380,000.

Rivervale’s main selling point is its proximity to the CBD and the airport, and there are also many amenities surrounding the suburb, including the Burswood Entertainment Zone.

There is a major shopping centre in neighbouring Belmont, which also contains a commercial/industrial district, and plenty of schooling options for local families.

A train station is located a short walk from the very north-western portion of the suburb, and there are frequent bus routes that traverse the suburb, particularly on Great Eastern Highway, Alexander Road and Kooyong Road.

Rivervale will benefit greatly from the ongoing development of the nearby Crown Complex and Perth’s new stadium, which is expected to be completed by 2018.

There is also considerable investment in transport-related infrastructure surrounding the suburb, which should reflect positively on capital values in the area.

Rivervale has been a very strong performer over the past three years, accelerated by rezoning which occurred in 2011, and one could argue that it has become a victim of its own success.

Development in the suburb is currently running strongly, with boutique apartment complexes being advertised in high numbers. Although Rivervale remains a solid investment option over the long-term, the current oversupply in the unit market should certainly be of concern for investors.