Riverton, Balga among Perth’s most affordable suburbs, new report finds

A new report has zeroed in on Perth's most affordable suburbs.
A new report has zeroed in on Perth's most affordable suburbs.

PERTH’S most affordable suburbs within a 20km radius of the CBD with high growth potential have been highlighted in a new report.

The PRDnationwide Perth Hotspots Second Half 2016 report singled out Riverton, South Guildford and Beckenham as the areas with the most affordable houses.

Balga, Maylands and Gosnells were identified as the areas offering the best opportunities in the units market.

In determining the hot spots, the report examined a broad range of investment and growth factors, including short and mid-term median price growth, online interest, volume of sales, median rental price, vacancy rates and rental yields.

Planned commercial, residential, infrastructure and industrial projects in the area were also taken into account.

PRDnationwide chairman and managing director Tony Brasier said the fundamentals in the six suburbs were strong.

“The amount of development activity taking place in these suburbs and surrounding areas is very encouraging,” he said.

“New roads and infrastructure, shopping centres and commercial precincts are reliable indicators of future price growth.

“There are some great opportunities available in these areas for investors and astute buyers looking for growth potential.”

The report also stated the Perth housing market had seen some positive signs in a select few suburbs despite a general weakening during 2016.

South Guildford, Manning and Riverton saw a rise in their median house prices while Applecross, Joondanna and Bassendean achieved growth in their median unit prices from 2015 to 2016.

“This situation has provided first-home buyers with attractive opportunities to enter the market, which has resulted in WA recording the highest proportion of first-home buyers in Australia,” Mr Brasier said.

“For the positive momentum to be maintained and to expand into the wider Perth marketplace, renewed confidence and growth in the mining sector and broader economy is needed.”

Perth housing growth hot spots

TypeSuburbMedian price 2015Median price 2016Annual growthRental yieldVacancy ratesHouseRiverton$632,000$690,0009.2%3.3%4.0%South Guildford$505,000$559,00010.7%3.7%5.8%Beckenham$448,000$454,0001.3%4.0%5.3%UnitBalga$325,500$352,0008.4%5.0%5.0%Maylands$374,000$390,0004.3%4.0%4.8%Gosnells$300,000$310,0003.3%4.7%4.5%