Perth’s property market is showing the strongest signs of recovery since the downturn started in 2014, according to new analysis which found 40 per cent of suburbs have had price growth over the past year.
Property analyst Terry Ryder said the market was benefitting from recent improvements in the WA economy, particularly in more expensive suburbs.
The riverside southern suburb of Mt Pleasant had the biggest jump with a 26 per cent increase in the median house price to $1.27 million in the past 12 months.
Mr Ryder, who founded hotspotting.com.au, said 85 out of 216 Perth suburbs had a higher median house price than a year ago.
“Jobs are being created in the resources sector and other parts of the WA economy,” he said. “When that happens, the first to feel it are the people who either have businesses or earn the big money so it starts to translate more first into the prestige, million-dollar suburbs.”
Other suburbs seeing big price increases are Brabham at 21 per cent, Kensington at 19 per cent, Claremont at 18 per cent and West Perth at 16 per cent.
Mr Ryder said no Perth suburbs showed an increase in sales activity, which is a precursor to price growth, 21/2 years ago.
“We’re now finding, in a substantial number of suburbs across the Perth area, there’s a trend of rising sales activity, and that’s starting to translate into price growth,” he said.
But some Perth suburbs are still undergoing a steep decline in house prices, such as Orelia with a 17 per cent drop in the past year.
Mr Ryder said he expected the recovery to ripple out to Perth’s outer suburbs over the next three to four years.
Real Estate Institute of WA president Damian Collins was cautious to suggest an overall recovery of Perth’s housing market was under way.
He said outside of the higher-end suburbs, there was an over-supply of properties for sale.
“Overall we do not expect to see price growth in 2019,” he said.
“It’s really a mixed market. The upper end is slowly starting to recover but the lower end is still a bit soft, a bit further away.”
Marc Sim, 27, and Dorothy Eu, 26, will move into their new $735,000 house in Mt Pleasant next week.
Mr Sim said they were attracted by a large block and the suburb’s proximity to the river, freeway and shopping centre.
“At the end of 10 years, I know we won’t lose our money,” he said.
Peter Zambotti, from Mont Property, said there were more buyers in the market and the suburb was good value.
“It’s confidence coming back to the market,” he said.
Top 10 list for Perth suburbs on median price growth:
1) Mt Pleasant $1,270,000, up 26%
2) Brabham $395,000 (21%)
3) Kensington $895,000 (19%)
4) Claremont $1,570,000 (18%)
5) West Perth $750,000 (16%)
6) West Leederville $1,260,000 (10%)
7) Mosman Park $1,400,000 (8%)
8) Subiaco $1,290,000 (7%)
9) East Fremantle $1,120,000 (7%)
10) Beaconsfield $725,000 (7%)
Source: Ryder Property Research