Analysts predict Canning Vale’s investment potential will get a significant boost over the next decade.
The suburb’s land supply, traditionally favoured by owner-occupiers, will dry up over the next decade, creating “pressure points” for price growth, Hegney Property Group chief executive Gavin Hegney said.
“But even if you buy now, the resale should be at or above replacement cost in 10 years,” Mr Hegney said.
He recommended properties near parks, schools and close to the shops. He also predicted Canning Vale would see more downsizing and renovation over the next 10 years as residents liked to stay within the area.
Momentum Wealth managing director Damian Collins said Canning Vale would perform in line with the Perth market over the next few years.
“We still think Perth will perform reasonably well this year as there is a shortage of supply,” he said. “At this stage, I don’t see Canning Vale outperforming as there is still land supply in nearby suburbs. But, longer term, as Perth grows significantly, the properties in middle-ring suburbs like Canning Vale will become in higher demand.”
Article published in ‘The Sunday Times – Realestate’ dated 19 January 2014.