The story of Fiona Stanley Hospital
So as you have come to know – the staff at PropertyESP are very inquisitive about what happens to Perth property prices when certain triggers come into play.
We have explored property prices over long periods in context with TOD’s and now we have examined the impact of the construction of the Fiona Stanley Hospital on property prices in this locale.
Murdoch was already an economic area, with Murdoch University and St John of God Hospital operating in the area. Ultimately these, plus the Fiona Stanley Hospital, had the potential to not only influence real estate sales activity in Murdoch, but also in the surrounding suburbs of Bateman, Bull Creek, Leeming, North Lake and Winthrop.
As such the opening of Fiona Stanley Hospital, the first tertiary public hospital to open in Perth’s southern suburbs for decades, had the potential to really change the dynamics of the area.
We extracted data for Murdoch, Bateman, Bull Creek, Leeming, North Lake and Winthrop … all suburbs where properties could almost be in line of site of the new hospital from 2003 onwards to cover the period prior to the announcement of the need for the hospital.
What was very interesting was that sales prices in Winthrop and Murdoch increased against trend from 2007-2008 by (see below graph 1). Together with North Lake they also increased at a greater rate from 2009-2010. From 2013-2014 it was the turn of Bateman, Bull Creek, Leeming and North Lake to pop.
Interestingly from 2003 to 2007 Murdoch, North Lake and Winthrop averaged about $120,000 - $180,000 above the Perth average, but in 2008 these suburbs doubled the value of the Perth average – indicating excellent ROI (see below table 1).
Looking at the demographics of the area we have also seen some interesting trends.
Murdoch, which has always had a comparatively low level of labour force participation, had a real shift. In 2001, a larger proportion of the labour force non-participants were student aged (15-24 years). By 2011, it was the retirement-aged (65+ years) group who formed the larger proportion of labour force non-participants.
Furthermore Murdoch has become less car dependent over the years, with a greater proportion of households with zero or one car.
There is a likelihood that there is a correlation between the change in age demographics and car ownership. It certainly appears that the Murdoch train station has also played a part in car ownership.
When these kinds of shifts occur within a locale they undeniably have some impact. But it is the extent of that value that PropertyESP really does well.
So if you are thinking of developing – let us crunch the numbers and tell you what you can expect – it’s what we do best – making sense of property.