WHILE the overall Perth market was fairly subdued in 2018, several suburbs saw significant price increases over the year.
REIWA has published its top 10 suburbs for median house price growth for 2018 and five of the 10 achieved over 20 per cent growth.
Brabham topped the list with a 31.8 per cent increase in its median house price.
It was the most affordable suburb on the list and the only one with a median house price below Perth’s overall median price for the year.
“Brabham experienced substantial growth last year, with its median increasing from $305,000 to $402,000, with Madora Bay coming in second, with its median lifting 28.7 per cent to $560,000 during 2018,” REIWA president Damian Collins said.
“However, caution should be exercised in translating these figures to the values of the properties in these areas. “Suburbs with newer stock can see changes in median prices that are out of step with the underlying individual property values.”
Seven on the 10 suburbs on the list had median house prices above $800,000, with four of the seven in the $1 million-and-above price range.
“While sales volumes in the lower-priced end of the Perth market remain soft, activity in the $800,000-plus price range has strengthened, which has created increased demand among buyers and contributed to the improvement in median house price that we’ve seen in suburbs like Mt Pleasant, Claremont, West Leederville, Kensington, South Perth, Alfred Cove and Shelley,” Mr Collins said.
Reiwa.com analysis also found all seven suburbs with a median house price above $800,000 had faster average selling times than the overall Perth market.
“It took an average of 69 days to sell a house in Perth during 2018, whereas in suburbs like Kensington (41 days), Claremont (49 days) and West Leederville (49 days), sellers are securing buyers for their properties a lot faster,” Mr Collins said.
“Increased demand in Perth’s luxury market is creating more competition between buyers, resulting in quicker selling times and higher sale prices.
“This data shows that home owners in these aspirational suburbs who are thinking of selling are well placed to secure a sale at a favourable price.”