Bullsbrook in the north eastern suburbs had the highest house price growth in Perth last year, with homes jumping in value by a third to hit a median of $530,000.
While Armadale was tipped by analysts as the place to invest in 2023, new research from the Real Estate Institute of WA shows Bullsbrook houses were the front runner with 33.3 per cent price growth, or a median $175,000.
Analysis by The West Australian shows some homes in the area more have than doubled in value in only a few years.
Homes with lofty capital gains include a three-bedroom, one-bathroom home on Brearley St, which sold for $425,000 two months ago – more than twice its $200,000 price tag in early 2020.
A minor kitchen renovation was the only change made to the property, which sits sits on a hefty 726sqm block.
Local agent Kristi Chivers from Redmond Realty said eastern state investors, first home buyers and downsizers were driving the local market.
She said while it was in the outter suburbs, buyers were impressed with the relatively congestion-free Tonkin Highway, claiming it was much more efficient than the freeway.
“Buyers tell me they would take Tonkin Highway over the freeway any day,” she said.
Ms Chivers said the last three homes she sold in the suburb were to eastern states investors.
“They are impressed that they not only get high rental yields, but they also get more bang for their buck they would in the northern suburbs.”
REIWA chief executive Cath Hart said the top ten list reflects the overall focus on affordability, with most suburbs in the top ten list for house sales in entry-level suburbs.
“Shelley and Woodbridge are the only suburbs on the list with a median house sale price above the Perth median, and Shelley is the only suburb with a median house sale price over $1 million,” she said.
“The remaining eight suburbs all have median house sale prices below $530,000, with Armadale the most affordable at $380,000.
“Rising interest rates and reduced borrowing capacity over the past year have driven interest in the lower-priced suburbs and competition for homes in these areas has seen them record extremely strong price growth.”
The affordability focus was similar in the unit market, with seven of the suburbs in the Top 10 for unit sale price growth coming in under the median unit price.
This list was led by upmarket West Leederville, which saw median sale prices rise 31.6 per cent to $500,000., followed by Erskine also recorded growth over 30 per cent to $432,500 .
“Unit prices have been much slower to respond to market conditions than houses, with many buyers preferring a house to a unit,” Ms Hart said.
“However, our members are reporting the overall demand for property, and particularly the strong motivation to exit the challenging rental market, is seeing greater demand for units.
“Units are generally more affordable than houses, which helps people put a foot on the property ladder in a rising market. This is helping drive price growth.”
The REIWA research shows Perth closed the year with 53,895 settled properties, including houses, units and land, which was 3.3 per cent lower than 2022.
However, the total value of sales was $34.85 million, which was 1.7 per cent higher than the previous year, reflecting an increase in sales prices.
Houses in Leda took only four days to sell – the fastest period in Perth, with Cooloongup and Seville Grove coming in next with five day sales periods.
Nollamara units sold in the quickest period of time – taking only eight days to change hands – followed by Balga and Orelia, which took nine days
“Buyers are clearly acting quickly when they see value. And while there has been a lot of discussion about Eastern States buyers snapping up bargains in some Perth suburbs, local buyers were also extremely active,” she said.
While 2023 was a nerve-wrecking time for renters and buyers, 2024 is unlikely to be any easier.
“2023 was a record-breaking year for the market, with the median house sale price reaching a new high of $590,000,” Ms Hart said.
“And while the median unit sale price was stagnant for most of 2023, it recorded 2.0 per cent growth in the last quarter of the year to settle at $408,000.
“This is just 0.7 per cent higher than at the end of 2022 but more growth is expected in 2024.”
Top 10 suburbs for house price growth
Suburb – Median – Change in annual house price – Median selling days
1. Bullsbrook – $530,000 – 33.3% – 11
2. Shelley – $1,175,000 – 30.9% – 15
3. Midvale – $460,000 – 27.8% – 14
4. Kenwick -$470,000 – 25.3% – 11
5. Cooloongup – $487,750 – 25.1% -5
6. Armadale – $380,000 – 23.4% – 7
7. Woodbridge – $800,000 – 23.1% – 19
8. Parmelia – $430,000 – 22.9% – 7
9. Camillo – $401,000 – 22.6% – 7
10. Swan View – $512,500 – 22.0% – 10
Top 10 suburbs for unit price growth
Suburb – Median – Change in annual house price – Median selling days
1. West Leederville – $500,000 – 31.6% – 13
2. Erskine – $432,500 – 31.1% – 12
3. Balga – $326,000 – 19.5% – 12
4. Baldivis – $390,000 – 18.4% – 9
5. Nedlands – $745,500 – 18.3% – 13
6. Orelia – $208,000 – 15.6% – 6
7. Armadale – $300,000 – 15.4% – 7
8. Wembley – $312,000 – 15.3% – 14
9. Nollamara – $395,000 – 15.2% – 9
10. Morley – $393,500 – 14.6% – 13