Homeowners, homebuyers and home loan brokers in Rockingham got great news when Rockingham was named WA’s best growth suburb under $550,000 and second-best nationally, with 13.1% growth in the last twelve months.
So, why are we so happy? And why should you be if you own a home or are thinking of buying one in Rockingham? Let’s take a look.
What is Annual Growth?
Annual growth is calculated by taking the median sale amount on two-bedroom homes in any suburb over the last year. At least ten homes must be sold to make the sample meaningful. For this study, the median was capped at $550,000. If the median price is above $550,000, the suburb is considered to be in a substrata of its own that isn’t relevant to the typical couple of family buying a home.
The annual growth is taken by comparing the price of the median home now as compared to twelve months ago. This removes seasonal influences from the numbers and provides a full year of sample time.
The median home in Rockingham sold for $500,000 and the growth was calculated at 13.1%
Why is Annual Growth Important?
The simple version: if capital growth on your property is higher than the rate of inflation or growth of the rest of the economy, you make money when you sell your house. The higher the difference, the more your net profit when it is adjusted against inflation. In a Perth market that has generally been “flat” the last year, Rockingham’s performance is outstanding.
Why Rockingham Did so Well
Rockingham is only 45 minutes from the Perth CBD, with easy transport via the Mandurah train line and Highway 1. We are on the Indian Ocean, transitioning from sleepy fishing village to suburb. The population is expected to explode within the next ten years, which should make current homes even more valuable.
Call a Home Loan Broker at Smartline Rockingham Today
To learn more, call us today: (08) 9527 1800