Several western suburbs record price growth during downturn

WHILE the Perth property market has been in a decline since 2014, several western suburbs have bucked the trend to record price increases, according to Reiwa.

West Leederville was the top local performer with a 14.9 per cent increase in median price, up from $1.092 million to $1.25 million over the reporting period.

Caporn Young sales executive Craig Gaspar said the location and community atmosphere were the secrets to the area’s success.

“I live in the area and love the sense of community and people get drawn to this,” he said.

“Also, it’s six minutes to the city and seven minutes to the coast, you can walk to Leederville or Subiaco and you can walk to the train or a bus.

“The easy access to the freeways north/south is also a bonus.

“We also have Lake Monger on the doorstep, as well as some amazing cafes/coffee shops and one of Perth’s best specialty wine stores, The Wine Thief.”

Mr Gaspar said the suburb offered a variety of properties, from apartments to character homes, which appealed to a wide range of buyers.

“There are young professionals to downsizers taking advantage of the walkability,” he said.

“There is always huge demand for family homes, and this will continue to grow.

“The West Leederville Primary School is fantastic and has built so many great friendships that everybody who lives in the area wants to stay, but the big driver that will keep putting upward pressure on the property prices is the opening of the new Inner City College, which has its first intake next year.”

Mr Gaspar said in most cases properties sold in the area were achieving slightly higher prices than when they were previously sold, but the market was still sensitive.

Cottesloe came in fourth on Reiwa’s list of the top 10 growth suburbs, with its median increasing 11.5 per cent.

Acton Dalkeith and Cottesloe director Bev Heymans said she agreed with Reiwa’s findings.

“I’ve sold a range of properties in the last year for more than the sellers paid. The most impressive result was a 30 per cent increase,” she said.

Mrs Heymans said the lifestyle and variety of properties on offer made Cottesloe a popular area.

“The lifestyle is incredible, the vibe very relaxed, and the proximity to great schools makes it ideal for families,” she said.

“It’s also such a varied suburb; it has large, medium-sized and small blocks, so can accommodate most budgets and requirements.

“There is really something for everyone and I’m finding there is interest in almost everything from houses to smaller apartments.

“There are a lot of downsizers out buying, and the smaller 300-400sq m blocks are very appealing for these buyers; they struggle to find these in some of the other suburbs.

“Families are really appreciating character homes particularly if there is a modern extension.”

Claremont was the other local top 10 suburb, with 6.7 per cent growth.

Best performer was Mt Pleasant, with its median price rising 16.4 per cent, from $1.08 million in 2014 to $1.25 million in 2019.

Reiwa president Damian Collins said it was one of the few suburbs that had seen its median increase to an all-time high.

Ardross was a close second, recording a 15.3 per cent increase in its median price, up from $880,000 to $1.015 million over the reporting period.

Mr Collins said the biggest trend in terms of lifestyle appeared to be the push towards the luxury market.

“Of the 10 suburbs, reiwa.com analysis shows nine had median house prices above $800,000 and seven were in the $1 million and above price range,” he said.

“While sales volumes in the lower-priced end of the Perth market remains 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, Ardross, West Leederville, Cottesloe, South Fremantle, Shelley and Claremont.

“Increased demand in Perth’s luxury market is creating more competition between buyers, resulting in quicker selling times and higher sale prices.

“These areas are clearly striking a chord with WA property seekers, which should provide local sellers with some confidence.”