Luxury suburbs leading the way in Perth property market recovery

 

by Hayden Groves REIWA President      https://reiwa.com.au/

REIWA recently released statistics showing Perth’s higher priced suburbs are leading the way in the property market’s recovery, with sales above $1 million accounting for 11% of all house sales in the metropolitan area.

This data shows there has been a steady increase in the proportion of sales above $1 million since 2012. In the year to June 2012, only 7% of house sales in the Perth metropolitan region were above $1 million; six years later this figure has grown to 11% – the highest it has ever been.

It’s interesting this increase has occurred during a time when the Perth property market and WA economy have experienced a difficult few years. Buyers clearly recognise there is excellent opportunity in these aspirational suburbs to purchase high-quality family homes at prices we are not likely to see again as the market recovers.

The five suburbs to record the most house sales above $1 million in the year to June 2018 were Nedlands (85 sales), Cottesloe (93 sales), Floreat (89 sales), Claremont (77 sales) and Mosman Park (75 sales).

Data also shows the number of Perth suburbs with a median house price equal to or above $1 million has increased to 37, up from 31 last year, and 25 of those 37 suburbs achieved quicker selling times than the overall Perth metropolitan region, indicating demand in these areas has strengthened.

In addition to these findings, REIWA also recently released a list of 12 suburbs that had experienced strong median house price recovery this year after experiencing declines in 2017.

The suburbs to have experienced the strongest rebound in price this year were North Fremantle, Bicton, Nedlands, Kallaroo, West Leederville, Helena Valley, City Beach, Claremont, Mosman Park, Winthrop, White Gum Valley and Leeming.

All twelve of those suburbs have a median house price above the Perth metropolitan median of $515,000 and seven of the twelve had median house prices above $1 million.

Perth’s aspirational suburbs are leading the way in the property market’s recovery. There is genuine competition amongst buyers in the luxury end of the Perth market, forcing buyers to act fast in these areas and pay a premium to secure the property.

Homeowners in these suburbs who are thinking of selling would be wise to take advantage of these favourable market conditions.

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