- Posted By Ayla Miels
As the most budget-friendly capital city in terms of housing costs, Perth presents enticing opportunities for individuals looking to purchase homes affordably while considering future growth catalysts.
Perth's real estate market showcases a broad spectrum of strengths, with particularly notable momentum observed in the more economical neighborhoods. Our list of top ten selections primarily features median house prices well below $500,000, combined with identifiable factors driving growth.
A common thread among these locations is their remarkably low vacancy rates, ranging between 0.2% and 0.5% for all ten areas.
Leading Perth's upward cycle are budget-friendly districts, many situated in the southern outskirts of the metropolitan region. Armadale has witnessed a doubling of sales volumes in the past year, resulting in price increases. Nonetheless, the median price is below $350,000. This suburb boasts a substantial retail-commercial hub, numerous schools, and convenient train connections to central Perth.
Within the City of Rockingham, the housing market has experienced substantial demand and price growth, driven by its affordability, coastal location, and proximity to one of Perth's major employment hubs. Baldivis emerges as the most active suburb in terms of sales within the LGA, with prices edging upward while still staying within the $400,000 range. Remarkably, the vacancy rate stands at 0.4%, even lower than Perth's average of 0.6%.
Situated northeast of central Perth in the Swan LGA, Brabham is an emerging market fueled by the trend towards an affordable lifestyle. Over the past two years, quarterly sales figures (ranging from 37 to 90) exhibit consistent and strong demand. This suburb offers extensive green spaces and recreational facilities, including Whiteman Park. The median house prices fall within the $500,000 range, accompanied by a vacancy rate of 0.5%.
As a pivotal suburb for services and amenities in the high-growth Swan LGA in northeastern Perth, Ellenbrook stands out. Abundant schools, the Ellenbrook Central Shopping Centre, and sports facilities characterize this area, complemented by the expansive Whiteman Park green space. Convenient access to central Perth is provided by the Tonkin Highway. Houses are priced around the $500,000 range, with a vacancy rate of 0.6%. Current sales levels are nearly triple those of two years ago.
Major infrastructure developments invariably impact real estate demand, and the suburbs within the Kalamunda LGA are greatly benefitted by the Forrestfield- Airport Link rail. Forrestfield boasts educational, retail, and recreational amenities, along with proximity to significant employment zones including Perth Airport. Sales activity has steadily increased over the past year, while vacancies have stayed at 0.5%.
The Wanneroo LGA in the northern reaches of Perth is Western Australia's fastest-growing municipality, projected to witness a 71% population increase by 2041 due to the creation of new suburbs. Despite being in new-growth areas, all Wanneroo postcodes, including Hocking, maintain vacancy rates below 0.5%. Hocking is adorned with schools, parks, a shopping center, and the nearby Yellagonga Regional Park.
At the heart of Perth's northern suburbs, Joondalup serves as a central hub with a university, hospital, government offices, retail spaces, and a transport interchange. This concentration of amenities fuels rental demand in the residential portions of the suburb, where vacancies hover at 1%.
The driving force in Perth's real estate market stems from its affordable segment, particularly evident in the City of Kwinana's budget-friendly suburbs. Although recent growth has boosted median prices, Orelia has just crossed the $400,000 mark. This precinct benefits from its proximity to a substantial industrial-commercial employment zone, train connections to the Perth CBD, and strong local amenities. Vacancies are at 0.9%, yielding rental returns above 6%.
Sales activity in Waikiki, located within the City of Rockingham, has surged from 70-80 per quarter two years ago to 130-140 in 2022. Typical house prices range from the high $400,000s to low $500,000s. Waikiki offers an enviable lifestyle, bordered by beaches to the west and the expansive Rockingham Lakes Regional Park to the east.
Being the priciest suburb in the City of Kwinana doesn't deter Wellard's affordability, with a median house price just below $500,000. Sales activity has doubled in comparison to levels from two years ago. Wellard is equipped with schools, parks, a shopping center, and convenient rail and freeway links to central Perth.