If you’re looking to buy property in the Western Australian capital, these suburbs could be worth a look.
In 2020, Western Australia’s property market was relatively steady.
According to CoreLogic, property prices in Perth increased 1.9% last year to a median price of $471,310. However, prices remain 19.9% below their 2014 peak.
If the forecasts are anything to go by, Perth house prices may make serious in-roads back towards that peak. Buyer's agency and research firm Propertyology forecasts house prices will rise 15% in Perth this year to top the national charts for capital city price growth.
ANZ also forecasts Perth will be the strongest performer, posting growth of 12%, while SQM Research expects it to see growth of 8-12% in best-case scenario.
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
Smart Booster Home Loan
- Discount variable for 1 year <=80% LVR
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Monthly repayments: $1,476
- Discount variable for 1 year
- No ongoing fees
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Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.
Founder of buyer’s agency Strat Prop, Darren Venter, said Western Australia had been building its resilience after the mining boom in the past decade.
“Coupling this with Perth being the most remote capital city in the world, the state has created resilience and self-sufficient environments which has been proven through the COVID pandemic,” Mr Venter told Savings.com.au.
“Combining this with our trusted indicators around infrastructure introductions and the benefits these bring to local economies, there are many sure win markets where investors can be sure to benefit from in 2021.”
So what Perth suburbs may see the best growth in 2021? We asked the experts for their picks.
Perth suburbs set for growth in 2021
Kingsley and Heathridge
Lloyd Edge, real estate expert and author of best-selling property book Positively Geared, said properties in Kingsley and Heathridge were taking very little time to sell, which would continue into 2021.
“I like Kingsley as over the October to December quarter in 2020 properties were taking on average less than 7 days to sell,” Mr Edge told Savings.com.au.
“This points to real price growth in this suburb from high demand. Heathridge is another suburb where DOM (Days on Market) are only around 10 days and I think this is set to continue in 2021.
“There will be high demand coupled with a shortage of supply which will push prices up.”
Melville and Leeming
Mr Edge said well-respected educational facilities would draw households to the suburbs of Melville and Leeming, pushing prices up.
“Down south I like Melville and Leeming. There are some good schools in the area and I think families and investors will continue to buy in school catchment zones.
“DOM again are less than 10 days on average when in proceeding years they were much higher with price declines as well.”
Compared to neighbouring pricey suburbs, Mr Edge said Rockingham had relatively affordable large blocks of land, which would increase in value this year.
“Looking at suburbs where land is still relatively cheap to surrounding areas can help growth in those areas.
“Rockingham is one such bridesmaid suburb where you can get a new parcel of land for under $170,000 but in nearby areas like Shoalwater and Singleton you would be paying an average of around $220,000.
“I would see Rockingham getting some substantial growth this year.”
Mr Edge said house prices in beachside suburb Cottesloe performed strongly last year, a trend which would continue this year.
“Cottesloe is a Western Suburb where the prices increased through 2020. I think this will continue through 2021. It’s always been a popular and relatively affordable suburb.”
Paul Blakeley, chief executive officer at Harcourts Western Australia, said low median values and strong investor opportunities made Forrestfield a great pick for 2021.
“Only 15 kilometres from the CBD, Forrestfield will soon have access to the new train station that will link to the airport and city train line, boasts a golf course, Hartfield park recreation centre, and new land estate (The Hales),” Mr Blakeley told Savings.com.au.
“It suits investors as the average rental yield is at 4.99% and also first homebuyers, with a median value of $380,000.”
Mr Blakeley said proximity to respected education centres and potential for investors to reinvent old properties made Willetton very attractive this year.
“Willetton is only 13 kilometres to the CBD and has strong demand from buyers for public school zones, with Willetton and Rossmoyne High Schools very popular schooling options.
“Larger sized blocks with older style properties provide opportunities to develop, with strong rental demand for investors.”
This beachside suburb had amenities that would appeal to a range of both buyers and investors, according to Mr Blakeley.
“This coastal location is only 12 kilometres from the CBD and has new foreshore development making it an attractive family location, with good quality private and public schooling.
“Additionally, it boasts a good mix of units and established housing for investors with strong demand from tenants.”
Although slightly further out, Mr Blakeley said Alkimos would soon benefit from new infrastructure, cutting down commute times and offering a great work-life balance.
“Alkimos is a new development north of the river, 38 kilometres from the CBD, offering affordable coastal living with a median house price of $400,000.
“The proposed extensions of the Mitchell freeway and train lines will provide greater access and reduced travel times.
“It’s good for first home buyers and also investors, with a rental yield of 4.3%.”
Further out from Perth, Mr Blakeley said Warnbro was a suburb which had seen huge demand and growth in the past year, which was set to continue through 2021.
“This southern coastal suburb, 46 kilometres from the CBD, has a low median house price of $315,000, with strong rental yields in excess of 5%.
“This suburb has seen demand increase over the last 12 months with a 5% increase in the median house price during this time.
“It offers a good lifestyle for families with its close proximity to the coast.”
DKO Architecture said access to amenities and increased infrastructure would make the already popular Subiaco suburb even more so.
“Orientated directly west of Perth City, Subiaco (Subi) is undoubtedly, one of the most sought after suburbs in Perth as it conveniently located to transport, schools, educational facilities, established parks, restaurants and retail,” they said.
Where are people moving to in Perth?
James Morrell, chief executive and co-founder of removalist comparison and booking website Muval.com.au, said removalist quote requests had nearly doubled on the platform since April.
“We’ve seen a remarkable increase in people moving interstate to Perth versus people wanting to move out of Western Australia,” Mr Morrell told Savings.com.au.
“With 66% of Perth removalist quote enquiries requesting to move into WA and only 34% wanting to move out, it looks like there could be more demand than there is supply and this may force house prices and rents up, especially as borders begin to open.”
Muval shared the 25 most popular suburbs where people were looking to move into from October to January of this year. Keep in mind, this isn’t an accurate indicator of growth suburbs, but rather an interesting quantitative market yardstick:
Photo by Nathan Hurst on Unsplash