10 Perth suburbs poised for price growth in 2022
New data from the state’s Real Estate Institute has identified 10 Perth suburbs that are likely to report significant price growth in the upcoming months.
Here are the top 10 Perth suburbs to watch out for, according to the Real Estate Institute of Western Australia (REIWA): East Cannington (7.7 per cent), Mount Helena (6.9 per cent), Seville Grove (6.8 per cent), Alkimos (6.2 per cent), Kelmscott (6.1. per cent), Bentley (5.9 per cent), Madeley (5.2 per cent), Ashby (4.1 per cent), Wellard (4 per cent), Mount Nasura (0.6 per cent).
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These locations were identified by REIWA based on their 2021 price growth rate, which saw them performing lower than the overall Perth market rate of 13.1 per cent.
However, what made these suburbs stand out was their reported sales volume, which saw an increase of at least 50 per cent.
Damian Collins, REIWA president, has explained why this is so: “It is often the suburbs that have high sales volumes and lagging prices that offer the best growth potential. They tend to have more ground to make up, especially if the suburb is in high demand with buyers.”
While recognising that there is no such thing as a property market crystal ball, Mr Collins expounded that by analysing the 10 suburbs’ 2021 sales data, it can help REIWA “predict where the next significant boom regions will be”.
Furthermore, eight of these suburbs have median house prices below $500,000, which, according to Mr Collins, is an indication that “demand is largely being driven by first home buyers who have taken advantage of Perth’s affordable prices to secure their spot on the property ladder in these accessible suburbs”.
Another indicator of price growth, on top of high sales volumes, is the median selling times, added Mr Collins.
Four suburbs on REIWA’s list reported less than Perth’s median days on market of 14 days: Kelmscott (nine days), Seville Grove (12 days), Madeley (12 days) and Mount Nasura (13 days).
All in all, Mr Collins is predicting a further 10 per cent rise in prices across all Perth suburbs in 2022, indicating potential price growth above and beyond this for suburbs named.
“They are clearly in high demand with buyers and there is plenty of ground for them to make up in terms of price growth,” said Mr Collins.
10 Perth suburbs with strong price growth potential
|
SUBURB |
MEDIAN HOUSE SALE PRICE
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|
MEDIAN HOUSE SALE PRICE GROWTH 2021 |
GROWTH IN SALES VOLUMES 2021 |
|
1. Mount Nasura |
$475,000 |
0.6% |
50% |
|
2. Wellard |
$415,000 |
4.0% |
80% |
|
3. Ashby |
$484,000 |
4.1% |
50% |
|
4. Madeley |
$610,000 |
5.2% |
75% |
|
5. Bentley |
$455,250 |
5.9% |
65% |
|
6. Kelmscott |
$350,000 |
6.1% |
53% |
|
7. Alkimos |
$430,000 |
6.2% |
78% |
|
8. Seville Grove |
$355,000 |
6.8% |
89% |
|
9. Mount Helena |
$540,000 |
6.9% |
67% |
|
10. East Cannington |
$452,500 |
7.7% |
62%
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