The City of Stirling is Perth’s standout market, with 10 of its suburbs experiencing growth, a new survey has found.
The latest Price Predictor Index released by hotspotting.com.au shows that City of Stirling suburbs â€“ including Carine, Doubleview, Gwelup, Innaloo, Joondanna, Woodlands and Tuart Hill â€“ had rising markets, with another nine suburbs recording consistent sales.
South of Perth, the City of Melville had seven growth suburbs including Attadale, Bicton, Booragoon, Kardinya, Melville and Palmyra where sales activity is rising steadily.
The far northern municipalities of Wanneroo and Joondalup also showed growth in some suburbs, the analysis found.
The report also showed suburbs in the Cockburn local government area experiencing growth, including Bibra Lake, Coolbellup, North Coogee and Spearwood.
Despite CoreLogic figures this week revealing another downturn in Perth’s property prices, analysts say the market is showing signs of promise after years of lacklustre returns.
Realestate.com.au’s Chief Economist Nerida Conisbee says the Perth market has shown positive signs of improvement over the past few months.
“There’s been an additional 24,000 jobs created in Perth in the past two years and there’s a very strong link between jobs creation and housing demand. When more jobs are created, more people need to move to Perth, so that’s a big factor,” Conisbee says.
“We have been seeing for some time some really strong growth in Perth’s premium suburbs.
“If you look across Perth, prices have dropped by 2.3% across the metro area in the past 12 months, but if you go to North Fremantle, Nedlands or Dalkeith, there’s well over 15% growth.
“We have seen a lot of premium suburbs do really, really well over the past couple of years. That’s usually an early sign that things are going well, but this has been happening for some time.”
Residential property researcher Terry Ryder from hotspotting.com.au says the cities of Melville and Cockburn were prime for the taking with strong sales activity and economic opportunities in Melville and improved transport infrastructure around Cockburn â€“ in particular, the expansion of the Port Coogee Marina, fuelling interest.
“Right now, as we observe the warming down of the markets in Sydney and Melbourne, Perth is one of those markets where property investors can turn to for, not only affordable buying but also prospects of growth moving forward,” Ryder says.
Until now, Perth property prices have been “going backwards”, he says, because of the downturn in WA economy post the resources boom.”
“There are very, very strong signs now of recovery in the local economy and as a consequence of that the Perth property market is becoming strong again,” he says.
“One of the symptoms of that is that the top end of the market has shown good price growth in the past 12 months. Many of the suburbs of Perth with median prices above $1 million have delivered double digit growth.”
Prestige suburbs including Nedlands, Applecross, Cottesloe, Dalkeith and Bicton had experienced strong price growth.
“So the fact that we have seen uplift in those top-end suburbs of Perth is another indicator, alongside others, that the Perth market is on the comeback trail,” Ryder says.
“We also know a significant uplift over the last several quarters of sales activity can be the beginnings of signs of early price growth in that market.”
He cited recent research by Property Investment Professionals of Australia that shows Perth has been the top location for growth in Australia in the past 30 years. When it was in its boom cycle from 2003 to 2007 it had an increase in house prices of 139.8%.
Conisbee says buyer demand had surged on realestate.com.au across all metropolitan regions in the past year.
“This is a good, lead indicator of price growth because typically what we see is when we see more and more people looking to buy on a view-per-property basis, it generally follows a better price growth occurs,” she says.
“We haven’t seen an uplift in views per property in about four years in Perth, but since December we have started to see this. There was a real shift at the end of last year that we noticed it had gone from a decline in demand to slowly starting to creep up with signs that things have started to improve.”
Nicole Cox, www.realestate.com.au, 7 September 2018