Impact of the AUKUS submarine plan on property in Rockingham

Our Licensee, Donna Gordin was asked to provide some input on the AUKUS submarine announcement and the impact on the property market in Rockingham and the surrounding suburbs.

Thanks to Australian Property Investor Magazine for including Donna’s thoughts.

“Donna Gordin, Director, Home2Home in Rockingham, said the submarine deal cements demand in the Rockingham and surrounding suburbs property market for years to come.

“We currently benefit from Navy personnel looking to live off-base, but also from those working in Henderson at the Marine Complex just 15 minutes to the north.

“It’s not just Defence personnel, this has a flow on effect to staff required to service the increase in population in the local retail and hospitality sector but also the workers required to build the infrastructure on Garden Island.
…
Ms Gordin said Rockingham’s vacancy rate of around 0.5 per cent was already driving people even further south of the city.

“Our median rental price is $475 per week according to REIWA, still $60 a week less than the Perth median price of $535, but as affordability starts to bite, people are moving further south to get a cheaper rent.

“We are in desperate need of more construction to meet the current needs, let alone future needs of Defence personnel.”

Ms Gordin said redevelopment of a long-dilapidated old pub on prime foreshore land was believed to be connected to Defence plans to house workers.

“This project has provided an element of excitement to tidy up the beachfront but given this announcement, it’s hard to believe Defence Housing Australia sold the old caravan park site that was originally purchased to build a mix of defence homes.”

The imbalance of demand outstripping supply has attracted the attention of Sydney, Melbourne and Brisbane property investors, she added.

“Without a doubt, the main contributing factor to the significant price growth of the area is due to the demand from eastern states investors, either directly or via buyers agents.

“It started in October 2021 and hasn’t stopped, not a week, in fact, most weeks, not a day goes by without a call from a buyers agent chasing stock off-market.”

You can read the complete article here.