Real estate recovery – the Perth suburbs surging upwards
- Cottesloe, Gwelup and Bicton among most promising Perth suburbs
- Stirling is Australia’s second-strongest government area for growth markets
- These increases are built from a low base, following a drop post-resources boom
In the wake of widespread downturn throughout Australia’s larger markets – Melbourne’s recent figures particularly bleak – Perth’s suburbs have been singled out by a recent index as leading the charge of a national real estate recovery.
The 2019 Price Predictor Index is put together by analyst Terry Ryder and available through his Hotspotting site – basing its predictions on quarterly sales trends, Mr Ryder has indexed Australian suburbs leading the way in the real estate recovery.
Mr Ryder’s Perth suburbs to keep an eye on throughout 2019, and their corresponding median price values, are as follows:
- Greenfields at $270,000
- Bassendean at $483,750
- Spearwood at $470,000
- Joondalup at $502,500
- Gwelup at $818,000
And among the state’s most affluent regions:
- Bicton at $1,057,500
- Cottesloe at $2,125,000
Each of these Perth suburbs are seeing increases in demand and value, likely to continue throughout 2019.
“Perth is moving into a recovery phase and we are seeing a lot of suburbs with rising sales activity, albeit from a low base,” Mr Ryder said.
“Nevertheless, the pattern over the last 12 months for many suburbs has been up, and the Perth market is now the strongest we’ve seen since the end of the resources investment boom.”
Echoes of the resources boom
This low base is especially evident when comparing median suburb prices since the resources investment boom. Port Hedland is a vivid example, with median prices at over $1 million during the peak of the boom, dipping to less than $350,000 a year ago. Despite this diminutive base, Port Hedland also exemplifies the increase, median prices now up by 12% at $385,000.
Taking a look at Western Australia’s market through a broader lens, municipalities are also performing well among their interstate peers. My Ryder points out that the area of Stirling is the second-strongest municipality in Australia for growth markets, with the strongest being Port Adelaide-Enfield.
My Ryder states that, “We have often commented in this report that the municipality of Stirling has stood out for ‘sterling performance’ in the face of the Perth downturn — and its status has grown.”
Similarly, the government area of Melville is among the top ten Australian municipalities for sales growth.
Smaller markets have contributed much to the real estate market of late, Tasmania also credited with increasing real estate figures, albeit hindered somewhat by alleged ill-advised council decisions.
Seemingly unhindered by such problems, Western Australia appears to be on a steady upwards march – lending Australia momentum, as the nation struggles to recover from widespread downturn.