- Herron Todd White's month in review has found WA offers affordable property in premium areas
- Neighbouring suburbs are a popular choice for those wanting to enter high-tier areas
- South West WA proving to be an area growing in prestige and price
Perth’s current housing market has continued to remain strong through the month of May, but some home buyers are managing to find affordable properties in high tier suburbs.
Herron Todd White (HTW) in their May edition of Month in Review found that some high tier suburbs contain properties that fall well below the average sale price for their area, but this occurs with the drawback of the property requiring a higher degree of maintenance or being a less than desirable dwelling compared with other local properties.
“The western suburbs of Perth generally are highly sought-after due to their proximity to both the Swan River and the Indian Ocean, as well as being close to the CBD and Perth’s most prestigious private schools.”
Chris Hinchliffe, HTW Director
Neighbouring suburbs offer a good deal
A prestigious suburb like Dalkeith, which is six kilometres away from the CBD and is located on the riverside, has a median house price of $3.4 million and an average rental price of $1,700 per week.
Weekly asking rents for 6009
Entering this area is unattainable for most homebuyers, so many will look at the slightly more affordable neighbouring suburb of Nedlands, which has a median house price of $1.95 million and a median rental price of $900 per week.
Weekly asking prices for 6009
However, on occasion, lower-costing properties enter the market, such as the two-bedroom, one-bathroom unit at 7/16 Monash Avenue in Nedlands that sold in September 2022 for $388,888.
The property is situated in a prime location being close to the University of Western Australia (UWA) and several hospitals.
Suburbs on the central coast, like Cottesloe and City Beach, also tended to fetch high prices, with the cheapest property this year in City Beach selling for $2.1 million.
Due to this, many homebuyers will head north up the coast to areas such as Scarborough. It offers a diverse range of properties ranging from units to higher end homes. In January this year, a one-bedroom, one-bathroom unit on Hastings Street (230 metres from the beach) sold for $330,000. The unit only offered a partially renovated 45 square metres of internal living space.
Affordable apartments in premium areas are becoming a reality
Perth’s population tends to prefer houses over apartments, however, recent development of higher quality apartments is helping to change that.
While the apartment appeal has drifted into well-heeled locations, the price tag can also match the locale’s prestige.
East Perth has experienced vast development over the last three decades, which has seen it transform from an industrial site to a modern residential apartment area. The suburb has seen high tier prices, such as a 159 square metre, three-bedroom, two-bathroom apartment with 180-degree city views sell for $1.25 million in January.
However, there have also been some apartments, such as 177/143 Adelaide Terrace which sold in January 2023 for $285,000. It only offers 40 square metres and does not have 180-degree city views, nevertheless, its CBD located placement makes it a quality investment that would have appealed to a great deal of buyers.
Perth’s hills also offer prime placements for a fraction of the cost
Due to the characteristics of Perth, those wanting to experience a rural lifestyle can do so and still be within a 40-minute drive of the CBD.
Areas such as Gooseberry Hill, a popular rural area of Perth, has seen sales of over $2 million within the last six months.
In December, a five-bedroom, four-bathroom house on a 1.22-hectare block in Gooseberry Hill sold for $3.01 million.
However, some properties enter the market at a much more affordable price, such as 54 Watsonia Road Gooseberry Hill. A 1960s house with two bedrooms and one bathroom on a 2,347 square metre block, the property sold in January for $660,000.
“Moving to the entry-level type properties in this area, you are looking at the much older and smaller style properties on a smaller but still generously sized allotment.”
Chris Hinchliffe, HTW Director
WA’s southwest and northwest coastal area suburbs are moving into higher prices
Southwest coastal areas such as Augusta have recently seen an increase in house prices, with accommodations such as a two-storey timber house with three bedrooms, and two bathrooms on an 809 square metre block selling in January for $1.4 million.
However, Augusta still sees affordable housing enter the market, such as a 1970s house with four bedrooms, and two bathrooms on an 856 square metre block that sold for $470,000 in December. This property however was set back a couple hundred metres from the coastline, which helped kept the price down.
Northwest coastal areas such as Broome and Cable Beach have also seen price increases largely due to holiday home buyers and increased tourism.
Cable Beach is starting to experience homes selling for over $1.5 million, such as the case of a $1.7 million property that sold in July 2022. It had five bedrooms, three bathrooms and sat on a 1000 square metre block of land.
However, smaller accommodation is available at a much more affordable price. A two-bedroom, two-bathroom unit in a 2011 built unit complex, that is under a kilometre from Cable Beach, sold for $490,000 in February.
HTW has found that across WA there are affordable low to medium-level properties in high tier areas. Though these properties can be hard to find as their availability can be rare, they an enticing and affordable option to enter into these more exclusive postcodes.
