Raine & Horne’s first Australian offering receives warm response

KUALA LUMPUR: Despite rising property prices in Australia, Raine & Horne International Zaki + Partners Sdn Bhd’s first Australian offering has received a warm response from prospective buyers.

According to Raine & Horne executive director L H Lim, although no sales were closed, many prospective buyers expressed interest in purchasing properties in Pinjarra and Gwelup at the property investment preview of its Western Australian (WA) properties in Kuala Lumpur earlier this month,

“Clients prefer to fly there for themselves to look at the properties before making a purchase,” said Lim, adding that Raine & Horne was acting in partnership with Original Property Brokers in Australia, who had first approached Raine & Horne six months ago with a joint-venture proposal.

“At the preview of the properties, our clients wanted to find out more about living in Australia, especially about migration, education and the general economic scenario,” said Lim. “There are many Malaysians looking to migrate to Australia now, especially for their children’s education.”

Two locations were marketed to potential buyers, namely bungalows for retirement homes in Gwelup Park, near the WA capital of Perth, and bungalows in Pinjarra Meadows, an up-and-coming private estate resulting from the mining boom and recent discovery of oil and gas.

“In the next six months, we hope to sell 10 units of the 50 we have to offer in Pinjarra,” said Lim, adding that for now it was still being sold off-plan. “For the bungalows in Gwelup, there are only a few units left, but 60 new-issue units are to be built. Of this, we hope to sell five over the same time period.”

The prices of homes in Gwelup Park, developed by Watson Property Group Gwelup Ltd Project, range from A$499,000 (RM1.547 million) to A$530,000.

The built-up areas for the homes range from 1,313 sq ft to 1,474 sq ft on parcels of land that average 2,228 sq ft. As it is a retirement home, at least one occupant of a house must be aged 55 years and above.

In Pinjarra Meadows, also developed by Watson Land, prices for a 4-bedroom, 2-bathroom house and land package range from A$357,506 to A$411,742. Land sizes range from 3,767 sq ft to 8,363 sq ft.

According to the 3Q2009 report by the Real Estate Institute of Western Australia, capital growth in the area is projected to grow by 20.1% per annum in the next five years and 15.1% in the next 10 years.

Melbourne-based news daily The Age recently carried a report that adjusted median prices on homes are up 3.7% in the September quarter in Australian capital cities, while prices for units jumped 3.4% according to Australian Property Monitors (APM).

The APM study showed that Melbourne's adjusted median house prices were the highest in the nation, rising 6.1% to A$487,246.

Meanwhile, home prices in Sydney gained 3.6% to A$569,061, while Perth's increased only 1.7% to A$494,409. The APM also showed that overall, home prices in Australia have increased 7.1%.