- Joondalup, Maylands and Rockingham topped the list
- Mosman Park unit prices up 39.3% since last year
- High demand and low availability driving rising prices
Unit prices took a hit during Perth’s market downturn, falling 17% since their peak in comparison to the 13% fall observed in house prices.
However it appears buyer demand has placed the Perth property market back on the road to recovery, with unit prices currently exhibiting stronger growth than house prices across 19 suburbs.
“Typically, it takes a longer time for the unit market to catch up to houses when prices rebound, however, these 19 suburbs are bucking the trend and seeing unit prices grow at a stronger rate than houses,” Mr Collins said.
Suburbs with strongest unit price growth rates
Of the 19 suburbs, Joondalup is topping the chart with a unit price growth rate 4.16 times that of house prices. The median unit price in Joondalup is $402,500 while the median house price sits at $529,000.
Joondalup is followed by Maylands and Rockingham, with unit price growth rates of 3.52 and 3.18 against houses respectively.
In Mosman Park, unit prices have risen by a tremendous 39.3% since last year. However, the affluent suburb only sits fifth on the chart for growth in unit price compared to house price, with the median house price at $1.625 million.
Suburbs where unit price growth is stronger than house price growth
|SUBURB||MEDIAN HOUSE PRICE||ANNUAL CHANGE||MEDIAN UNIT PRICE||ANNUAL CHANGE||RATE OF UNIT GROWTH COMPARED TO HOUSE GROWTH|
|4. North Perth||$900,500||3.2%||$448,000||9.3%||x2.89|
|5. Mosman Park||$1.625 million||16.1%||$430,000||39.3%||x2.44|
|9. Hamilton Hill||$525,000||19.3%||$344,000||28.6%||x1.48|
|10. Mount Lawley||$1.077 million||13.4%||$399,000||19.3%||x1.44|
|12. Tuart Hill||$579,000||11.3%||$330,000||15.3%||x1.35|
|16. North Coogee||$1.16 million||4.5%||$550,000||5.0%||x1.11|
Mr Collins identified competitive market conditions in Perth to be a driving force in the powerful unit price growth rates. He explained that due to high demand and low availability, buyers are widening their search to include units.
“Many people are opting for units as a more affordable lock and leave option, getting them into affluent suburbs like Mosman Park where the median house price is nearly four times more than the median unit price,” Mr Collins added.
Perth market bounces back
The Perth Market as a whole observed strong growth in the past week, with sales activity increasing by 25%.
Perth’s unit prices underwent a 25% growth in the last week, and an overall 5.2% growth in the last sixth months.
“It’s pleasing to see such steady growth across the Perth unit market, and we don’t see this slowing down any time soon.”
Damian Collins, REIWA President
The thriving market is not exclusive to units though, with substantial growth seen in the number of sales of houses (21%) and land (67%).
Listings for both sales and rentals are down however, by 19% and 23% respectively as compared with this same time last year.