The Perth property market continues its resurgence: Hotspotting's Terry Ryder
The Perth market is pumping in a way that hasn’t been seen since the end of the resources investment boom in 2013.
This is most starkly evident in the sales data. In the three years from 2018 to 2020, Perth recorded between 34 and 59 suburbs with rising sales activity in our quarterly surveys. But our three surveys in 2021 have found 118, 103 and 115 rising suburbs.
Our latest quarterly analysis has found improvement in many of the major municipalities across the Perth metropolitan area. Armadale, Bayswater, Belmont, Canning, Gosnells, Joondalup, Kwinana, Stirling and Wanneroo have all increased the number of suburbs with rising market activity, while Rockingham has maintained its position with all nine suburbs classified as rising markets.
The one notable under-achiever is the Melville LGA, where only three of 14 ranked suburbs are rising markets.
The two leading municipalities are Wanneroo and Stirling. In Wanneroo, 17 of the 21 ranked suburbs are classified as rising markets, headed by Butler (quarterly sales of 50 51 61 65 71 95 96 120 125), Landsdale (50 67 70 73 82) and Clarkson (58 64 63 99 101 114 120). In Yanchep, quarterly sales have risen from 35-40 in 2019 to above 100 per quarter now.
Fifteen of the 23 ranked suburbs in the LGA of Stirling are rising markets, maintaining this area’s track record as a place of sterling performance. Quarterly sales in Balga have been 59 77 83 83 101 while Mt Lawley has recorded 56 71 101 106 112 and Nollamara 53 99 94 109 115.
Rockingham is one of the few LGAs in the nation where every suburb is rising, headed by Baldivis (134 223 220 290 295) and Port Kennedy (48 48 76 85 91 112)
The always-steady Joondalup LGA has improved its ranking, with the number of rising suburbs increasing from six to nine in the latest survey, with a notable uplift in prices (see below). Quarterly sales in Craigie have been 33 39 50 59 67.
There has also been a significant improvement in the LGA of Bayswater, with the number of rising suburbs improving from two to six, including Bayswater, Bedford, Maylands and Noranda.
In the city of Cockburn, nine of the 13 ranked suburbs have upwardly-mobile markets, including Coolbellup, Coogee, Hamilton Hill and Spearwood.
There has been notable improvement in several of the cheaper markets in the Perth metro area: Armadale (6), Canning (4), Gosnells (6) and Kwinana (5) have all increased the number of suburbs with rising sales.
The suburb of Armadale has recorded quarterly sales of 50 61 69 79 87, while Bentley in the Canning LGA has had 29 29 51 57 65 and neighbouring East Cannington has done 19 26 27 39 43. Quarterly sales in Gosnells have been 60 63 99 105 134 138.
In the Kwinana LGA, the cheapest market in Perth, Orelia sales have been 12 17 21 25 43 and Wellard 33 50 66 93 110.
Swan has maintained its steady position with five rising suburbs, led by Ellenbrook (88 96 96 131 153 159 165).
PRICES: It’s been a long time between drinks, but prices are now moving strongly upwards in the Perth market – 97% of suburbs have recorded annual growth in their median house prices while 73% of unit markets have risen in the past year.
There are only six suburbs in the Greater Perth area which have failed a record price growth in the past 12 months.
For several years we have ranked the Joondalup LGA as the precinct most likely to thrive when the Perth market recovered and now it’s leading on price performance. Thirteen suburbs have had double-digit growth in their median house prices in the past year, led by the 21% rise to $595,000 in Currambine. Craigie ($465,000) and Duncraig ($750,000) have risen 15-16%.
Northern neighbour Wanneroo has also done well, with eight suburbs rising more than 10% in the past year, headed by the 16% rise to $400,000 in Banksia Grove. Girrawheen ($320,000), Marangaroo ($425,000) and Yanchep ($415,000) have all increased 15%. As the figures show, affordability is a feature here.
We have also predicted improvement in the ridiculously cheap suburbs in Kwinana LGA – Wellard ($410,000), Parmelia ($275,000), Leda ($290,000), Medina ($250,000) and Orelia ($265,000) have all risen more than 10%, with Medina (up 28%) the star.
Further south, another affordable precinct, the Armadale LGA, has several good growth markets, led by Kelmscott ($340,000) and Armadale ($245,000), which have increased 21-22%.
Two middle market areas which have featured often in our Top 5 Perth Hotspots reports – Stirling and Melville – are both prominent now with good price growth. The Stirling uplift is headed by Joondanna ($710,000), Yokine ($650,000) and Osborne Park ($550,000), all up 15-16%. In Melville, Bicton has surged 31% to $1.13 million and other growth suburbs are Palmyra, Mt Pleasant, Bull Creek and Bateman.
Among the more expensive suburbs, the growth leaders are Claremont (up 34% to $1.7 million), City Beach (25% to $2.09 million), Floreat (21% to $1.57 million) and Cottesloe (20% to $2.3 million).