CoreLogic’s Perth home value index increased 0.4% in December, bringing the increase in home values to a total 13.1% across the calendar year.
This is good news for Perth property owners, as the anticipated return of overseas migration early in 2022 will add further momentum to the property market.
The 2020 housing market was significantly boosted by the new building stimulus measures. Many expected the end of these incentives would see a reduction in demand for new land and housing in 2021.
Western Australia’s economic growth however, experienced fewer interruptions from long-term lockdowns and restrictions than other parts of the country. This facilitated a low unemployment rate and encouraged general confidence in the market, which resulted in demand continuing to increase throughout the year. These continuing conditions, plus the expected increase in migration when boarders reopen, will result in Perth maintaining its healthy price growth into 2022.
The good news for home buyers however, is that the Perth property market has maintained relative stability in relation to price growth. Which means that Perth is one of the most affordable cities to purchase a property in the country, whilst still maintaining a trend of positive growth.
Perth Suburbs Moving Up
Many suburbs around Perth experienced an increase in average house sale price, but Applecross was the standout winner of the month, with average house sale prices growing 6.2% to $1.7 million. Kalamunda also performed well, with average prices rising to $710,000, which is an increase of 4.9%.
Wannanup also ranked in the top five for December, with a 3.4% increase to $585,000. Close behind was Mandurah, which rose 3.2% to $310,000. Fifth place was Beckenham, where average house sale prices increased 3% to $422,500.
Kardinya, East Victoria Park, and Doubleview also showed strong price growth for December.
Best Performing Suburbs Of 2021
According to recently released REIWA data, a number of suburbs outperformed the overall Perth market, recording more than 13% growth during 2021. In fact, ten suburbs recorded growth during 2021 of 25% or more.
Woodlands was the best performing suburb in 2021, with it’s average house sale price exceeding $1 million for the first time. Fifth placed Wembley Downs and sixth placed North Beach also saw their average house values reach over $1 million during the year.
With the exception of Hillman, Lockridge and Brookdale, all other suburbs to make the top ten have either equaled or overtaken their previous peak prices. With Brookdale returning a 6.7% rental yield, it will not be long before it too exceeds it’s previous peak.
CoreLogic also released data on the suburbs with the highest average house sale values for the twelve months to November 2021. Dalkeith topped the list, with an average sale value of over $2.8 million. And whilst Peppermint Grove ranked second, with an average house sale value of almost $2.7 million, it did take out the prize for highest sale, with one property selling for $15.7 million.
Swanbourne had the second highest sale for the year, of $13.3 million and ranked fifth overall, with an average house sale price of over $1.8 million. Cottesloe ranks third for average hose sales at $2.4 million for the year. It also took fifth place in highest sales, with one property selling for over $10.2 million in March 2021.
Outlook for Perth
We are starting to see the return of the investors in Perth due to affordable prices, high yields, strong economic growth and low unemployment rates. Eastern states investor activity has increased substantially in January as well as proactive local investors.
Home buyer activity has remained strong in all segments of the market, with multiple offers being received and prices well above asking being achieved. We expect stock levels to tighten up as we go into February and price pressure and competition to be sustained throughout the year, accelerating once the borders are open.
At Resolve Property Solutions, we are working with our clients to gain access to as many suitable properties as possible. As well as sourcing properties which meet our clients brief, we also search for off-market opportunities where possible to provide more options, and always ensure they are buying the right property at the right price.
Resolve Property Solutions is an independent and qualified Buyer’s Agent specialising in Perth property. We will work hard for you to help you search, negotiate and secure your property goals at the best possible price.
Our story started with the passion for property and the research behind finding the right one.