10 sub-$500k markets set to soar in Perth in 2023

He’s listed off 10 suburbs that he believes will be “top performers” across the capital city over 2023, outlining that “all of these suburbs have a median house price of $500,000 and achieved strong capital growth during the last year”.

Mr McQuillan expressed the expectation that these suburbs would lead the market over the coming months, “driven by strong investor demand, especially from the eastern states”.

“When you combine rental returns with capital growth, many of these lower-priced suburbs delivered investors in excess of 20 per cent return on their investment,” he shared.

“For example, Waikiki, with a median house price of $440,000, achieved a capital growth rate of 16.8 per cent over the past year. 

“Rents in these lower-priced suburbs are also surging. In Calista, for example, median rents jumped by a nearly 20 per cent over the past year.

According to the managing director, “the chronic shortage of housing in Perth means that rental returns will continue to rise, especially in well-located and established suburbs.

“Gross rental yields for houses and units are now at their highest point on record for Perth, making it the second-highest yielding capital city.”

He said that Western Australia’s capital city offers property buyers throughout Australia “incredible value for money”.

“And because there [is] such a chronic shortage of new housing, established house prices in these lower-priced Perth suburbs will continue to rise.

Highlighting how Sydney buyers could buy up to three lower-priced houses in lower-priced suburbs for the average price of a house in their own city, he pointed out that the median price of a house in Calista is just $338,000. In Sydney, the median house price is currently sitting upwards of $1 million.

While the following suburbs do offer good potential for would-be investors, Mr McQuillan has urged buyers to rely on detailed research to achieve the best outcome — “rather than taking a broad-brush approach to this market”.

Mr McQuillan’s top 10 Perth markets priced under $500,000: