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Choice, competition mean good deals 18/07/2015

About 22 per cent of Perth buyers purchased in the south-western corridor in the March quarter and it is easy to see why, with lots in the City of Rockingham averaging $215,559 and $239,317 in the City of Kwinana.

About 22 per cent of Perth buyers purchased in the south-western corridor in the March quarter and it is easy to see why, with lots in the City of Rockingham averaging $215,559 and $239,317 in the City of Kwinana.

The City of Cockburn is also in this corridor and the area has a huge product range, from luxury beachside homes to modern apartments at the train station.  

If you are looking for a good buy at the moment, the south-western corridor has a lot to offer and, because the market has come off the peak, the prices are very competitive.

In June last year land-supply constraints pushed availability down to about one lot per forecast buyer, which limited choice.

Currently there are around two lots for each forecast buyer, which means there is both choice and competition in the market and that means good deals. 

There is variety of size as well with Landgate settlement data showing that 34 per cent of lots in the 10 most popular suburbs in the south-western corridor are over 450sqm. 

This compares to just 16 per cent in the top 10 suburbs in the central subregion, which includes Canning Vale, Balcatta, Bayswater and Morley.

The south-western Corridor is a popular location, close to employment, the coast and transport links, making it a magnet for first-homebuyers. 

Wellard and Baldivis are two of the most popular locations with 1106 applications for the First Home Owner Grant received for these adjoining suburbs in the 10 months to April 2015. 

This is higher than the 1049 applications received for the full 12 months to June 30, 2014. 

Baldivis has topped the list of popular suburbs for FHOG applicants for the past three years and has been in the top three locations for the past five years.   

The attractiveness to first-homebuyers also creates some volatility for that market as renters tend to transition into home ownership when the market conditions are favourable. 

With higher rental vacancy rates pushing down rental costs, the imperative to buy is not as strong.

The challenge for first-homebuyers is that they sometimes wait until rental vacancy rates get tight and rates go up however.

However, by that time the market has shifted to favour sellers and it can be difficult to get the home you want at the price you want it.

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