Perth stands as one of Australia’s more affordable capital cities for first home buyers according to NHFIC analysis.
In December 2021, the NHFIC reported Perth’s “prospective first home buyers experience much more favourable opportunities to buy their first home, with income earners in the second income quintiles [in the top 60% of income earners] being able to afford around 30% of properties in the market.”
By comparison, this figure was only around 10% for Brisbane and Adelaide, and near 0% for Sydney, Melbourne and Hobart.
This relative affordability could see demand for Perth property continue to surge in 2022, but will there be enough supply to cater for this demand?
According to PRD Chief Economist Dr Diaswati Mardiasmo, new housing supply in Perth has been quite low, with not many houses coming on to the market.
“The number of Aussies that have relocated to Perth reached its highest points in the past 8 years, meaning that demand has been increasing, but supply has not been able to keep up,” Dr Mardiasmo told Savings.com.au.
“Buyer sentiment has been strong in Perth, due to the low number of COVID cases and business continue to operate, thus unemployment levels have not skyrocketed.”
Looking towards the new year, Dr Diaswati said supply is proving “sluggish.”
“The threat of undersupply remains true in 2022. Depending on consumer confidence and thus demand, and to what level it outstrips supply, it will determine the level of growth in 2022.”
Listed below are a few Perth suburbs that some experts are tipping for strong property price growth in the next twelve months.
Median price data sourced via Realestate.com.au and is accurate as at December 2021.
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Orelia and Kwinana
According to Director of The Investors Agency Darren Venter, Orelia in the City of Kwinana is set to benefit from development in the area.
“Lithium projects in Kwinana will indirectly impact the housing market in the area,” he said.
“With this being one of the biggest lithium projects, the demand for employment is going to be very high, so much so that Kwinana region population growth is expected to grow dramatically.
“Right now it has around 40,000 people, by 2036 it’s expected to hit 85,000 people.”
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Median price - Orelia: $292,50 for houses, $150,000 for units
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Median rent - Orelia: $350 p/w for houses, $250 p/w for units
Duncraig
“If you go up north to Duncraig, it's a very well established market,” said Mr Venter.
“But we are expecting to see that rise and suburbs in that region have done very well.”
Mr Venter told Savings.com.au that due to how isolated Perth is, it needs to be self-sustainable.
“The secret pockets of WA - you need industrial, commercial, residential, everything.
“It’s the most isolated capital city in the world, so those are the keys to growth in the region.”
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Median price - Duncraig: $767,500 for houses, $486,500 for units
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Median rent - Duncraig: $580 p/w for houses, $455 p/w for units
Fremantle
Darren Venter says Fremantle is an obvious area set for growth.
“We expect Freo to be picking up a bit.
“It’s a positive market and it’s always going to have that slow growth.”
“The lithium development in Kwinana actually has to go through Fremantle first, and will also benefit from the uptick in that industry.”
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Median price - Fremantle: $945,000 for houses, $507,500 for units.
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Median rent - Fremantle: $615 p/w for houses, $450 p/w for units.
Midland
Dr Diaswati said Midland is a market encouraging for first home buyers.
“Recording a median house price of $317,000 in Q3 2021, first home buyers are encouraged to take this opportunity to enter the market as the suburb median price is well below Perth Metro’s median price of $591,000,” she said.
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Median price - Midland: $319,000 for houses, $278,000 for units.
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Median rent - Midland: $350 p/w for houses, $330 p/w for units.
Balga
“Balga recorded a median price of $336,000 in Q3 2021, with a total of $25.0M worth of projects being spent in the area,” said Dr Diaswati.
“This will help create further business, improve productivity in the area whilst creating employment opportunities that will benefit the local economy.
“Balga offers a great family lifestyle with close proximity to public transport, shopping centres (Kingsway City Shopping centre) schools, medical centres and parks.”
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Median price - Balga: $340,000 for houses, $260,000 for units.
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Median rent - Balga: $360 p/w for houses, $370 p/w for units.
Middle Swan
Dr Diaswati said Middle Swan recorded a median house price of $345,000 in Q3 2021.
“First home buyers are encouraged to take this opportunity to enter the market as the suburb median price is well below Perth Metro’s median price of $591,000,” she said.
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Median price - Middle Swan: $340,000 for houses, units N/A.
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Median rent - Middle Swan: $380 p/w for houses, $290 p/w for units.
Cannington
Situated in the southern side of Perth metro, Cannington recorded a median price of $420,000 in Q3 2021.
Dr Diaswati said Cannington is a friendly family suburb that offers great family lifestyle.
“The suburb is located within close proximity to public transport, shopping centres (Westfield Carousel), schools and medical centres (Fiona Stanley Hospital),” she said.
“A total of $55.0M worth of projects being spent in the area.”
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Median price - Cannington: $460,000 for houses, $343,000 for units.
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Median rent - Cannington: $420 p/w for houses, $380 p/w for units.
Dayton
Dayton is located north of the Perth Metro region, recording a median house price of $425,000 in Q3 2021, sitting below Perth metro median price of $591,000.
“Dayton ticks the right boxes in terms of project development expenditure of $34.4M which will create employment opportunities that will benefit the local economy,” said Dr Diaswati.
“Dayton is also located within close proximity to public transport, shopping centres, schools and medical centres.”
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Median price - Dayton: $440,000 for houses, $380,000 for units.
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Median rent - Dayton: $400 p/w for units, $234 p/w for units.
Also read: Brisbane suburbs to watch in 2022
Image by Harry Cunningham via Unsplash
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