PERTH’S property recovery in blue-ribbon areas is beginning to spread, with “secondary suburbs” like Como, Bull Creek and Mt Lawley recording big jumps in demand and median prices in the June quarter.
Perth’s two-speed housing market means prices across the city have slumped 2.1 per cent in the past year, but top-end suburbs have rallied in recent times as trade-up buyers and investors take advantage of the discounts on offer.
And while premium suburbs such as Bicton, Nedlands and Subiaco experienced some of the highest levels of growth in the year to June, quarterly statistics reveal a “ripple effect” has now emerged, property investment consultancy Momentum Wealth says.
Based on 24 transactions, the median price of homes sold in Como in the three months to June surged 20.3 per cent to $962,500.
It was a similar story in Bull Creek, where the median price jumped 20.1 per cent to $795,000 on 19 sales, and in Mt Lawley, where the median price climbed 19.8 per cent to $1.15 million, also 19 sales.
“These suburbs hold obvious appeal to buyers who are still able to benefit from close proximity to amenity and nearby activity centres, but without the high price range often associated with Perth’s premier suburbs,” Momentum Wealth research adviser Shaun Strickland said.
“The fact we are now seeing growth in these secondary suburbs is a strong indication the market is entering the next stage of recovery, with demand expected to extend outwards from here.”
Bourkes Property senior sales executive James Thompson, who has worked in Como for the past 12 years, said the number of listings in the suburb had stabilised with sales activity trending up — especially in the top-end of the market.
“When people ask me if now is a good time to buy or sell I say, ‘Yes – if you are doing both’,” he said.
“If you are selling a home for what was once $500,000 for $450,000 that is a perceived loss of $50,000 or 10 per cent. But if you are then buying a home that was $1 million the market doesn’t discriminate and the same discount applies. You are probably saving $100,000. We call that trading up in a down market and I believe that is what is happening.”
Tim and Lyn Atterton have lived in Como for nearly 20 years, swapping their traditional four-bedroom, two-bathroom family home on 700sqm in June for a townhouse on a rear lot.
“Our old house was only on the market for 18 days and we got the price we were asking for,” Mrs Atterton said.