One of the most appealing things about Wonthella is its centrality in Geraldton, Western Australia's fifth largest city.
The suburb was gazetted in 1972 and, as part of the City of Gerladton-Greenough local government area (LGA), is situated only three kilometres northeast of the Geraldton city centre.
Real estate agent Cyril McKenzie of Professionals Midwest Realty notes that Wonthella is one of the most central suburbs of Geraldton, which contributes to its popularity.
"The thing about Wonthella is that in Gerladton, the way the town is structured, all reads lead to Wonthella," he says.
"It's one central point, it's a five minute drive from the centre of the main business district and almost anybody goes past Wonthella no matter where they're going."
Geraldton, the big port and administrative centre for WA's midwest region, is on the state's Coral Coast, more than 400 kilometres north of Perth.
"It has great weather andis immensely popular with windsurfers and lovers of aquatic lifestyle, he says.
Being so close to the beach and with property considered to be affordable, there is some suggestion Wonthella has been popular with 'sea-changers'.
According to the 2006 Census, there's a higher proportion of residents aged 65 and over in Wonthella compared to the rest of Australia. But despite those figures, the median age of 37 was on par with Australia.
McKenzie contends that traditionally, up until the past few years, Wonthella would have been populated with an older demographic.
"Most of the eople would have lived there for quite a long time but there has been a changing of the guard with young families buying in," he says.
HOUSING
McKenzie believes younger buyers are attracted to Wonthella because they can see the investment potential in the properties available.
He says redevelopment opportunities abound in the suburb with the major appeal being the uniqueness of the lot sizes - the properties are bigger than others in the rest of Geraldton.
"It's got the old quarter acre block of 1012 square metres."
He says the sewer is now connected to the area and with council approval, owners can get two blocks out of one by strata titling them into smaller blocks.
"That;'s really helped in making it attractive I guess for people to buy."
Most new subdivisions in Geraldton have properties for sale of the average block size of 600 or 700 square metres.
McKenzie says there are almost no units at all in Wonthella but that's now starting to change as the bigger blocks are redeveloped.
He says either new houses or units are being built at the back of properties that already have existing older homes.
But McKenzie notes that Wonthella is really quite a small area.
"It's a little bit confusing for us I guess - it's been identified as an area of interest and growth and a good place to buy, but in fact it's a very small spot," he says.
"I don't know how many houses there are but it goes from First Street to Eighth Street. It's not really a big spot."
Brad Mazza of Hegney Property Valuations says there's a small scattering of newer dwellings in Wonthella but housing is mostly comprised of a combination of asbestos, brick, brick veneer and fibro constructed homes built between the 1950s and 1970s.
"The majority of homes within the area are generally green titled with approximately 20 per cent being strata titles," he says.
According to the Real Estate Institute of WA (REIWA), the most common form of title in the residential property market is the green title. A green title - or freehold - is the common name given to the traditional block of land that isn't affected by owners of adjoining properties.
AFFORDABILITY
RP Data has named Wonthella as a property hotspot for 2009, largely due to its affordability.
Research analyst Camerson Kusher says it's one of the more affordable suburbs within the major regional centre of Geraldton.
"In comparison to other coastal major regional centres, Wonthella is particularly affordable and has all the benefits of being located within a major city, particularly when compared to the coastal areas found south of Perth," he says.
Mazza says Wonthella could be considered to be a more affordable locality within Geraldton, especially due to its proximity to all amenities.
He cites REIWA data, which shows the median price in the Geraldton-Greenough locality was $350,000 in Septmeber last year and $331,000 for Wonthella.
But Collins asserts that Wonthella has a median price much the same as the rest of Geraldton.
He says it's a typical suburb in the area and has lower prices thatn some of the suburbs closer to the beach.
"It's still relatively affordable compared to other coastal locations in WA."
But Collins notes it's priced similarly to properties on the outer fringes of Perth.
"Due to higher construction costs in regional towns in WA, I don't see many regional towns at 'bargain' prices compared to the Perth region,' He says.
To buy a property in Wonthella, McKenzie estimates you'd be looking at paying around $325,000 to $350,000. He says that will get you a big quarter-acre block with an older-style home - not necessarily rundown, just older-style - in timber or fibro.
VALUES
According to Collins, Wonthella, along with Geraldton and many other regional towns, has seen a significant rise in property prices over the past few years.
"The price rises in Wonthella have largely matched the prices in Geraldton as a whole," he says. "In 2003 the median price was around $110,000. This increased to around $170,000 by 2005 then up to almost $275,000 in 2006.
"Since then prices have continued to increase - albeit at a slower rate - to around $340,000."
But he notes in recent months, due to the slowdown in mining and the global financial crisis, more properties have come on to the market and the prices are no longer rising.
"I think investors contemplating investing in this area have missed the boom," he says.
"Prices more than tripled over five years and that was unsustainable.
With the recent slowdown in the mining industry, it's quite possible prices will flatline for a number of years."
Collins believes Wonthella will perform much the same as Geraldton on a whole.
"It isn't an exclusive beachside area and not on the outskirts of town so it will likely generate growth in line with the Geraldton region," he says.
Mazza says Wonthella has experienced some growth in values in the past few years. He cites figures from the REIWA indicating a 31.6 per cent rise in median house prices ove rthe past five years and an 8.5 per cent increase in the year to September 2008.
While he says the growth may continue, he believes it's dependent in part on developments in the area going ahead and surrounding indusries continuing their strong production.
According to RP Data, median house prices in Wonthella have grown by 8.2 per cent over the year to September 2008, 22.5 per cent over the past five years and 15.8 per cent over the 10 years to September 2008.
"On average, Wonthella has seen 11 sales a quarter during the last 10 years, 13 sales a quarter over the last five years and 10 sales a quarter over the last year," says Kusher.
McKenzie asserts the potential for capital growth in Wonthella "goes without saying". Buying in the area is a good option, he says, because subdivision is possible down the track. He says the value is all in the fact that the blocks can be split in two and sold off.
For example, he says if you buy a property with a house on it for $350,000 and then chop the block in half and sell the house for $320,000, the remaining blcok has cost $30,000.
If you then build on the empty block it might cost $200,000, but if you sell it for $300,000 you've made $70,000.
So McKenzie contends you don't need to rely on the market going up to create equity. "Simply by doing that subdivision you come out ahead," he says.
"In the market we've got no guarantees any more of growth so buying something with built-in creation of equity is a very secure way to go." In terms of the rental market McKenzie says there's never any problem getting tenants for properties in Wonthella. He estimates a three bedroom, one bathroom house rents for about $300 a week, while for something a bit bigger and nicer you'd be looking at around $400 a week in Geraldton anywhere.
With a current median rent of $285 per week, Kusher says the average gross rental yield sits at 4.31 per cent.
CHANGE IN THE WIDER GERALDTON AREA
In addition to the affordablity of housing and its coastal location, Mazza notes that one of the benefits of investing in Wonthella is the ongoing change and growth occurring within the local government area.
According to Collins, the strongest sign for the area is that there is plenty of planned investment and development. This, he says, should make it more desirable to not only live in but to visit and do business in.
"There are a number of physical and social infrastructure projects that have already commenced or are planned for the near future," Collins says.
A multi-billion dollar deepwater port is planned at Oakajee, 25 kilometres north of Geraldton. It's designed to service the midwest region's growing iron ore industry and is expected to deliver hundreds of new jobs in the area. As part of the project, developer Oakajee Port and Rail plan to provide rail access to iron ore miners and an industrial estate will also be located at the port.
Collins says the Oakajee deepwater port will serve the mining industry. "This is a significant project considering the region has the nation's biggest deposit of iron ore after the Pilbara," he says. "The port and its associated infrastructure are expected to cost over $3 billion."
Collins says the Batavia Coast marina development, on the Geraldton coastline, is also a significant project and will add lifestyle appeal. It has created opportunities for commercial, residential, tourist, retail, hospitality and mixed-use developments.
"There are also major residential land developments, a new resort in the town, hotels, retail developments and a heavily publicised eco-resort on the Abrolhos Islands all earmarked for the area," says Collins.
McKenzie is very positive about planned projects for the Geraldton area. He says there are good strong growth prospects for the whole of Geraldton and Wonthella would be carried with it. "Geraldton as a whole hasn't suffered to the same extent as other regional centres because there's such a strong feeling that something major is going to hapen here," he says.
He says a lot fo that is to do with the deepwater port, as well as the major industrial park to accompany it. "The port is the catalyst that allows other major businesses to relocate here and use it."
According to the Geraldton-Greenough council, the population of the region is expected to grow from about 35,000 to at least 80,000 by 2020.
McKenzie says that means in the next 11 years 2000 new homes will need to be built each year, which he describes as a pretty progressive market place.