South of the river takes affordability cake

Perth’s runaway property market has sent house prices flying, but homebuyers are still able to snag a place that won’t break the bank if they cast their eyes to the south.

Data sourced from REIWA at the end of May has revealed the metropolitan’s top 10 cheapest locations are all south of the river, with the exception of the City of Swan’s Lockridge near Caversham.

Each low-priced suburb recorded positive three-month changes in median sale price, and Parmelia led the way with an 11.3 per cent three-month improvement, as well as a 14.6 per cent annual growth showing and a steadily rising $275,000 average asking price.

LJ Hooker Kwinana Licensee Fayez Hourani said he managed a large property portfolio and it was pleasing to see capital and rental growth for clients.

“We have great confidence this trend will continue and offer potential buyers a great start, not only to their investment portfolio but to their family home,” he said.

“I am finding a lot of young families are purchasing in this area, with big blocks, access to schools, shops and public transport, and affordability making it a winner.

“The investor market also seems to be returning.

“With the amount of money government is investing in nearby Kwinana, suburbs like Parmelia will reap the benefits of not only capital growth but amenity and lifestyle.”

Suburbs neighbouring Parmelia and Kwinana were certainly attracting homebuyers, with Orelia, Medina, Leda and Calista also making REIWA’s affordable suburbs list.

All suburbs were less than $300,000 in median value and had a three-month upward swing of between 3.9 and 9.6 per cent.

Sharing her thoughts on Medina – a suburb that clocked an 8.7 per cent three-month change in median sale price – Southern Gateway Real Estate Property Consultant Sue Done said the demand for local property was similar to the appetite for toilet paper in 2020.

According to Ms Done, Medina was sluggish for a couple of years but both prices and sales have shot up.

“Medina has been compared to the vibe of Fremantle but at a more realistic price,” she said. “We are still a bit short on previous prices achieved around 2012, but hopefully this will change by the end of the year.

“We have a shortage of rentals given our larger subdividable blocks – this should attract investors.

“Lower prices in Medina make it easier for first-time buyers who are having difficulty in finding a rental, and the introduction of the two per cent deposit scheme will help.”

Rounding out the top 10 list of cheap suburbs were Mandurah, Armadale, Brookdale and Camillo, with each suburb slated to rise in price as the year progresses.

REIWA President Damian Collins said there was plenty of room for outer-suburb home values to push forward, but given their low base they were still expected to remain incredibly affordable.

While some homebuyers will just be happy to get their hands on some inexpensive property, residents who prefer to live close to Perth must be prepared for much larger mortgages.

Within a 10km radius of the Perth CBD, suburbs recording three-month growth upticks are still priced under $1 million, including Inglewood, Leederville, North Perth, Mount Hawthorn and the suburb of Perth.

Mount Lawley, Wembley Downs and West Leederville all clocked average values over $1 million, while Wembley and Coolbinia were priced at $1.1 million and $1.19 million respectively.

Though it might seem like these were eye-popping prices, Mr Collins said they were about 35 per cent of what buyers would pay for in Sydney and still comparatively affordable.

“Premium properties in Perth were basically the first market out of the gate,” Mr Collins said. “They performed particularly strongly in the middle to end of last year and I think they will continue to grow into the back half of this year.

“The top end of the market is already up significantly and as we move into next year, I think we’ll see the mid-range suburbs start to play a bit of catch up.”