Rockingham Is The Ship That Has Sailed

Rockingham has seen prices skyrocket with capital growth of 20%+ over the past two years. Unfortunately the ship has sailed but take 5 minutes to read the article, I will provide insights to the suburb’s great success which you can replicate.

Suburb Details:

Now normally I would only cover suburbs where you can purchase homes for less than $450,000. However Rockingham is the perfect case study of a suburb that had properties sub $450k 2 years back but now the minimum entering price for a 3 bedroom house is $550k. Rockingham has certainly passed its ideal stage of purchasing and is nearing the peak of its accelerated growth that it had experienced over the past 24 months. Some people have made close too $200,000 dollars having bought at the correct time in 2022, its phenomenal growth.

The suburb is home to about 14,432 people, with nearly 28.73% of them renting their homes. The typical price for a house here is $546,000. That's gone up by 10.30% in the last year and by 21.60% in the last two years. While asking rents have steadily increased from 2019 of around $300 to about $530 per week. That’s over a 150% increase. However the projected population increase by 2026 is less than 1%, meaning less demand, potentially less rental income and stagnation in capital growth. But this is yet to be seen!

Key Data Metrics

Location & Infrastructure

Rockingham is about 45 minutes south of Perth CBD with the major State Route 2 highway taking you there directly. The city has some of the nicest beaches with a range of amenities, recreational facilities and entertaining options to enjoy. Ideal for families with young children to live in. Rockingham station lies on the Mandurah line and with about a 40 minute train ride you can be in Perth CBD, which honestly is not that long of a commute . Rockingham centre has a range of shops including JB-HI-FI, Woolies, Coles and Target. They also have two cinemas extremely close to each other if you need to watch a movie urgently. Apart from all of this they have a range of parks, recreational centre and a large lake. The reason I am boasting Rockingham’s infrastructure is because it speaks to the liveability of the area, meaning that the suburb will have strong demand maintaining strong rental returns.

Other Key Factors

Rockingham has had a number of infrastructure projects completed in the past years with further investment flowing into the city. Building approvals still remain quite low indicating that there will be a continued short supply of properties throughout the city keep demand & rental prices high. There aren’t many pockets of empty land for developers to buy and build houses on, so that will keep supply low. With great liveability & accessibility Rockingham should remain an ideal suburb for renters, owner-occupiers meaning prices will remain high for the foreseeable future but that does not necessarily mean prices will continue to still grow at the rate it has in the past 12 months. Days on market is quite high indicating that the market is slowing down with prices peaking. Vacancy rates still remain low meaning that there will be strong rental returns and that you won’t have to put up with a poor quality tenant.

Major Construction Projects:

• Rockingham Foreshore Revitalisation was completed in August 2019

• Baldivis Sporting Complex in the City of Rockingham

• Rockingham Beach Foreshore Revitalisation was completed in August 2019

Example Property:

_{*Note: These calculations are purely estimations, but overall numbers will vary depending on your deposit, interest rates and other factors.}

Pro’s Of Investing In Rockingham

• Large infrastructure projects drove prices up.

• Strong liveability factors mean it will always be popular for renters & owner-occupiers.

Con’s Of Investing In Rockingham

• Prices have stabilised and capital growth is decelerating back to normal levels.

• There are other suburbs that provide greater returns for equivalent deposits.

• The ideal buying moment has passed. Prices will peak soon.

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_{Disclaimer: The information provided in this article is for educational and informational purposes only. It is not intended as financial, legal, or professional advice. Always do your own research and consult with a qualified professional before making any decisions. The opinions expressed here are solely those of the speaker and do not reflect the opinions or views of any other organization. By using this information, you agree that the creator of this content is not responsible for any financial or other losses you might incur.}