Savvy investors are seeking capital growth potential in Rockingham, driven by an increasing cohort of Australian Defence Force personnel based in the area and the corresponding need to grow the region’s housing.
Located roughly 47 kilometres south-west of Perth’s city centre, this fast-growing Western Australian suburb offers beachside appeal, access to amenities, and solid investment potential.
“Like much of Perth, Rockingham has seen incredibly strong price growth in recent years,” says REA senior economist Angus Moore.
“The median sale price in the suburb has increased just over 20% in the past year alone, and prices have essentially doubled in the past five years.”
“Even so, it is a more affordable part of Perth, with a median sale price just under $670,000, well below Perth’s median of $960,000.”
Rents have also been increasing rapidly, amid very tight rental market conditions.
“This has pushed rents for houses up 7%, and for units up 10% in the past year,” says Mr Moore.
Rockingham is calling for investors
There’s no doubt Western Australia is viewed by many investors as a goldmine.
“The share of new loans going to investors in WA is 38%, close to the highest level the state has seen in two decades,” says Mr Moore.
For investors who want the peace of mind and security of a government tenant, a reliable income stream and a hands-off investment, investing with Defence Housing Australia (DHA) ticks all the boxes.
DHA Executive General Manager Shane West says, “Rockingham is a priority DHA location due to its strategic importance as a major naval hub and the growing number of Defence personnel resulting from the AUKUS alliance and the expansion of HMAS Stirling.”
“New DHA-compliant properties are being built in Rockingham and nearby suburbs to accommodate the influx of Defence members,” Mr West says.
Looking to the Future: artist impression of the lively entertainment and cultural hub coming to Rockingham beach. Picture: City of Rockingham.
DHA’s Build to Lease program is tailored for investors
DHA’s Build-to-Lease program in Rockingham presents a secure and streamlined property investment pathway.
“Our Build to Lease Program simplifies the process for people wishing to buy an off-the-plan investment property,” says Mr West, “as investors can choose from a range of packages that DHA has already assessed and agreed to lease once built.”
“The program allows investors to choose their preferred location, style, layout and price to match their preferences and circumstances,” he says.
One of the key benefits of this program is the peace of mind that comes with knowing the property will be leased to a government organisation once built, with lease terms of up to 12 years.
DHA investors can also count on guaranteed* rental income and unique property care services^ with DHA taking care of tenanting, inspections, and most non-structural repairs.
In Rockingham, new DHA-compliant properties are being built at a fast rate by local builders and developers including Forma Homes, Plunkett Homes, Parcel Property, and Endeavour Homes.
Through DHA’s Build to Lease program, several hundred new homes are planned to be delivered in Rockingham within the next five years to support Australian Defence Force members and their families.
Builder partner Endeavour Homes is delivering an average of one home every week – and DHA is seeking more off-the-plan investors.
How Build to Lease works
DHA regularly reviews house and land packages put together by builders and developers.
Once the property is assessed and meets DHA’s needs, an ‘offer to lease’ is provided by DHA.
Investors can buy these DHA lease-approved properties directly from participating builders or real estate agents.
This provides investors with the security of knowing that DHA has already assessed and committed to leasing the property on completion.
Once the property is constructed, DHA will lease the property under a long-term lease.
To explore available properties, visit DHA’s website or search for keywords such as “DHA” or “Defence Housing Australia” on realestate.com.au and select ‘new property’ in the search filter.
A secure, long-term government tenant for your investment property.
Other DHA investment pathways
To meet the diverse needs of Defence members and their families, DHA leases a broad range of property types in various locations around Australia, including brand new houses, townhouses and apartments, as well as established properties.
In addition to purchasing off-the-plan property, there are several ways to become a DHA investor.
If you already own a residential property, you can apply to lease your property to DHA, provided it meets the minimum requirements.
This refers to basic property specifications such as the number and type of rooms as well as being located within 30 kilometres of a serviced Defence base.
DHA can also work with investors before they purchase or build a new property to ensure it meets the requirements, often with the option for DHA to pre-commit to a lease before the purchase or construction is completed.
DHA regularly works with builders and developers around Australia to lease properties to house Australian Defence Force members and their families.
The DHA advantage
When you invest with DHA, you benefit from more services compared to traditional property management.
The DHA service fee covers all vacancy management costs, saving you from re-letting and advertising fees, as well as any loss of rent during vacant periods.
“As part of our rental guarantee*, DHA will continue to pay you rent and maintain the grounds, even if the property is unoccupied,” says Mr West.
“DHA also handles most non-structural repairs^, including the replacement of fixed appliances when necessary”.
Additional benefits of the Property Care Contract include periodic rental reviews, scheduling and facilitating inspections and contractors, and end-of-lease repairs and cleaning.
To learn more about the benefits of property investing with DHA, visit the DHA website.
Investors should always seek appropriate independent advice before making any investment decisions with DHA.
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