Top 10 suburbs for unit price growth in Perth
Ten suburbs in Perth are defying the odds as unit prices grow faster than house prices, a trend that is not typical in a market where buyers usually put a premium on detached houses.
In July 2021, a CoreLogic study showed a record high gap between median house and unit prices in the Australian property market. CoreLogic’s Eliza Owen reported that the price difference between houses and units in Perth dropped to 39.1 per cent in May, and 38.9 per cent in June 2021.
According to REIWA President Damian Collins, Perth’s “unit prices were especially impacted during the market downturn, falling 17 per cent since their peak compared to house prices which fell 13 per cent.”
When the market picks up and prices rebound, the housing market usually leaves the unit market behind. But not in Perth.
Perth’s suburbs saw unit price growth overtaking houses, with an increase as high as 39.3 per cent recorded in Mosman Park.
“Competitive market conditions have been a driving factor of the strong unit price growth in these suburbs, with many buyers broadening their search to include units,” Mr Collins explained.
“In addition, many people are opting for units as a more affordable lock and leave option, getting them into affluent suburbs like Mosman Park where the median house price is nearly four times more than the median unit price.”
The strong performance of Perth’s unit market has seen its median unit sale price rise up to $405,000, representing a 5.2 per cent increase in the last six months.
Mr Collins praised this positive turnaround and predicted that this trend will be sustained in the coming months:
“It’s pleasing to see such steady growth across the Perth unit market, and we don’t see this slowing down any time soon. With continued buyer demand and low available stock, more buyers may turn to units as an alternative entry into the WA property market.”
“As unit prices continue to recover, we should see the gap created by the previous downturn narrow, with growth likely to continue into 2022,” Mr Collins said.
According to REIWA, these are the top 10 Perth suburbs where unit price growth is outpacing house price growth:
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Suburb
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|
Median House Price |
Annual Change |
Median Unit Price |
Annual Change |
Rate of Unit Growth Compared to House Growth |
|
1. Joondalup |
$529,000 |
7.6% |
$402,500 |
31.8% |
x4.16 |
|
2. Maylands |
$720,000 |
9.1% |
$382,700 |
32.0% |
x3.52 |
|
3. Rockingham |
$421,250 |
10.9% |
$282,500 |
34.5% |
x3.18 |
|
4. North Perth |
$900,500 |
3.2% |
$448,000 |
9.3% |
x2.89 |
|
5. Mosman Park |
$1.625 million |
16.1% |
$430,000 |
39.3% |
x2.44 |
|
6. Como |
$940,000 |
9.4% |
$489,000 |
18.7% |
x2.00 |
|
7. Balcatta |
$510,000 |
7.6% |
$378,500 |
14.7% |
x1.94 |
|
8. Rivervale |
$550,000 |
8.9% |
$398,250 |
14.4% |
x1.62 |
|
9. Hamilton Hill |
$525,000 |
19.3% |
$344,000 |
28.6% |
x1.48 |
|
10. Mount Lawley |
$1.077 million |
13.4% |
$399,000 |
19.3% |
x1.44
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