Experts and property economists have lauded Perth as Australia’s next property hotspot after spending years in the doldrums following the decline of the mining boom.
Western Australia has been named Australia’s most affordable state to live in by the Real Estate Institute of Australia for eleven consecutive quarters, and the Perth property market is seeing its highest number of property sales in five years.
According to Hotspotting.com.au managing director Terry Ryder, Perth has become one of the “busiest markets in Australia” thanks to the containment of Covid-19, the activity of first-home buyers, government support, low interest rates and low vacancy rates.
“The Perth market has shown greater resistance to the pandemic impact than most Australian markets in terms of sales activity. Its market is now pumping strongly,” said Ryder.
The prices of homes in Perth began rising in June, said Realestate.com.au chief economist Nerida Conisbee.
“The increase was microscopic and unit prices dragged down the overall numbers; however, all signs are now pointing to very good things for Perth,” she said.
According to Conisbee, three regions in Western Australia more broadly are seeing strong price growth: Karratha, Collie and Port Hedland; Capel, Harvey and Darnadup in WA’s south-west; and the Margaret River.
Perth’s economy overall is more coronavirus-proof than other capital cities, with mining still a major driver of the local economy.
And the prices of iron ore and gold, another one of WA’s major commodities, have surged, she added.
“At the same time, WA has managed to escape high rates of infection and people are working relatively normally again. From an economic perspective, it looks pretty good for the state.”
CoreLogic data released yesterday revealed that there was no change to Perth’s property prices in the month of August, while Sydney, Melbourne and Brisbane prices fell.
Expert names top 5 Perth property hotspots
Looking at metropolitan Perth, Ryder pinpointed five suburbs set for property price growth: Stirling, Joondaloop, Rockingham City, Kwinana, and Wanneroo.
Stirling’s economy and property market is on the rise thanks to several major infrastructure projects, including a $1.6 billion upgrade to two of the suburb’s major shopping centres.
The lifestyle offered by the city’s cafe and bar culture and proximity to Scarborough Beach has attracted younger residents and first-home buyers to the area, pushing up sales activity and house prices.
Joondaloop has seen a rise in buyer demand, helped by a major retail/waterfront projects and the Boas Place project which involves retail, office, hotel and residential elements.
“Joondalup is an area with strong amenities, services and good road/rail links to the CBD,” Ryder said.
“Joondalup offers a pleasant waterside environment (Lake Joondalup) while being within easy reach of the ocean and beaches. For property investors, it has the important quality of major education and medical facilities, which provide a steady pool of rental demand.”
Rockingham City offers a seaside lifestyle and access to job hubs, and has been described as a community for young families with first-home buyers particularly attracted to this area.
Residential construction, driven by strong population growth, are expected to continue for another 20 years, said Ryder. The area also has some of Perth’s lowest vacancy rates.
The Kwinana precinct is a beneficiary of a number of State and Federal Government grants, and is an affordable area with good yields, low vacancies and solid population growth.
“This is the cheapest precinct in the Perth metro area, with several suburbs having median house prices in the $200,000s (and one is below $200,000),” said Ryder.
Kwinana, which is part of the Western Trade Coast industrial area which hires 11,000, also has links to key job hubs, trains to the city, is in close proximity to beaches and is nearby green spaces such as The Spectacles Wetlands.
Wanneroo has a plentiful supply of vacant residential land ready for development yet low vacancy rates.
“Over the past decade, 177,000 new residents have moved to this municipality, making it the fastest-growing local government area in Western Australia. There’s little sign of a slowdown in the growth of this region,” said Ryder.
“Growing industrial areas are providing employment opportunities and with houses in most suburbs priced in the $300,000s and $400,000s, properties in the city of Wanneroo are worthy of attention by both home buyers and investors.”