In the past year, the small, approximately 0.7 square kilometres community of Harris Park recorded a mere 9 house sales. Given its size and the number of green spaces occupying 2.4% of the total area, the number leaves much to be desired.
No sooner than the thought of investing in property here crosses one’s mind, the realization of a paltry 2.37% rental yield for houses swiftly pushes it away. On top of that, stagnating at an average weekly rent of $550, Harris Park doesn’t strike as an attractive investment proposition.
The census information for Harris Park suggests a population figure of 5,071 in 2011, a number that underwent a 14.1% increase barely five years later in 2016, rising to 5,785. Not only does this demonstrate an implausibly rapid growth, but also points towards potential struggles with infrastructural strain and overcrowding issues.
However, the demographic makeup of Harris Park reveals predominantly 30-39 years age group. Ostensibly a prime category for economic contributions, yet in reality, they are likely to be stretched thin financially, as they are probably paying off a monthly mortgage repayment within the range of $1800 – $2399.
Residents of this region are primarily engaged in professional occupations. It’s interesting that despite their seeming financial obligation, they are still committed to their careers.
Harris Park had a 28.1% home ownership rate in 2011, and whatever the cause, this figure fell to 23.9% in 2016. This decreasing trend throws a shadow over the area’s residential stability and paints a grim picture of its future landscape.
In 2016, the median property price for units stood at a somewhat hefty $550,500. That, combined with an annual capital growth of 19.67%, might give a fleeting illusion of prosperity.
However, consider the recorded 164 unit sales in the past year – a figure much higher than that for houses. Is this a sign of future realities, where affordable housing becomes increasingly scarce and units the most viable living option?
The units tend to sit idle on the market for about 46 days on average, which for an investor translates into lost potential income and deflates the appeal of an investment. The current rental yield for units at 5.96% with a weekly median rent of $560 doesn’t provide a convincing argument for investment either.
Over the last quarter, units experienced a depreciation of 0.81%, a sign that shouldn’t be taken lightly. On the surface, the annual growth of 19.67% seems promising but is the risk of another quarter of depreciation worth the gamble?
With a predominant age group of 30-39 years, it seems the younger generation struggles to afford a house. It is unfortunate that in search of livelihoods, they fall into the mortgage repayment black hole of $1800 – $2399 per month.
Despite these pitfalls, it seems like this demographic values their professionalism as a significant number of them hold professional occupations. However, it does leave one wondering whether this professional commitment is due to passion or financial necessity.
The owner-occupancy rate in Harris Park was 28.1% in 2011, a figure that fell to 23.9% in 2016. This downward trend prompts an important question: are the citizens of Harris Park trading in home ownership for the uncertainties of the rental market, or is there a bigger picture we might be missing?
In conclusion, as we analyze all these aspects, a clear picture emerges: Harris Park might contribute to the housing market statistics, but its potential as a lucrative spot for property investments is up for debate.