Perth-city-REIWA
Image: Canva.
  • Perth has defied the housing market downturn, with the property remaining relatively strong
  • Weekly asking prices are still increasing
  • Outer suburbs show the greatest opportunity in price growth for 2023

Bucking the trend against most of the nation, the Perth property market has defied the housing downturn in the larger capital cities this year.

While slower and some mild price falls have been recorded across Perth, the market overall remains healthy with a busy and competitive housing market.

SQM Research data shows weekly asking prices are still increasing.

Perth

[Select part of the chart to zoom in on various years, and ‘reset zoom’ button to return]

Having spent much of the 2010s with a downturn in the housing market due to the end of the last resources investment boom, Perth is now one of the cheapest cities in Australia.

According to CoreLogic, the median house price is the lowest among the eight capital cities, with its lower entry price point and strength of the underlying state economy boosting the Perth property market.

This is particularly evident in the city’s rental market, with consistently low vacancies and strong rental growth across the city,” noted property expert Terry Rider in Canstar’s latest Rising Starts Australian Property Market Report, powered by Hotspotting.

“Overall performance is being boosted by a significant program of spending on major new infrastructure, relatively one of the biggest in the nation. The number of major projects is creating economic activity and jobs, which translates into demand for real estate.”

So, what are the best suburbs in Perth to invest in?

Perth continues to offer attractive options for people to buy affordably in locations with strong future growth drivers.

The top 10 suburbs, analysed by Hotspotting, mostly have a median below $500,000, and have identifiable growth drivers.

All suburbs have extremely low vacancy rates, between 0.2% and 0.5%.

Here are the top 10 suburbs, based on the median price.

Top 10 Best Suburbs to Invest in Perth for 2023 (by median price)

  1. Armadale
  2. Orelia
  3. Waikiki
  4. Wellard
  5. Ellenbrook
  6. Baldivis
  7. Brabham
  8. Forrestfield
  9. Hocking
  10. Joondalup

1. Armadale

It should be noted that Perth’s ‘up’ cycle is being led by affordable areas, many of them in Perth’s south. Sales volumes have doubled over the past year in Armadale, with significant price rises yet the median is below $300,000. The suburb enjoys a significant retail-commercial centre, numerous schools and a train line direct to the city.

2. Orelia

Another southern suburb is Orelia, which is one of the cheapest suburbs in Perth with a median price of just $305,000.  The precinct is close to a major industrial-commercial employment zone, with several train stations on the Mandurah Line nearby. Vacancies are 0.3% with rental yields above 6%. The area is popular with young families.

3. Waikiki

Sales activity in Waikiki, located in the City of Rockingham, rose from 70-80 sales per quarter two years ago to 130-140 per quarter this year. Most houses are in the high $300,000 to low $400,0000 range. The lifestyle-orientated suburb has houses close to the beach on the west, with houses in the eastern part of the suburb near the Rockingham Lakes Regional Park.

4. Wellard

The most expensive suburb in the City of Kwinana, Wellard has a median house price just above $400,000. The area has seen sales activity double compared to two years ago. There are a range of schools in the area, parks, a local shopping centre and strong links to central Perth via the Mandurah Line and the Kwinana Freeway.

5. Ellenbrook

A relatively new suburb, Ellenbrook is located in the high-growth City of Swan in Perth’s north-east. There is an array of schools in the area such as the Ellenbrook Central Shopping and amenities, and greenery including Whiteman Park. Tonkin Highway provides links to central Perth, while the area boasts a median house price of $400,000 with relatively new housing stock. The vacancy rate is just 0.4%. Sales are almost triple that of two years ago.

6. Baldivis

Elevated buyer demand and price growth has seen Baldivis record strong growth during the past year, of 8.9%. This suburb remains relatively affordable with a $435,000 median and popular due to its seaside location and proximity to Rockingham.  The vacancy rate for the suburb is 0.4%, well below the Perth average of 0.6%.

7. Brabham

Another Swan LGA suburb in Perth’s north-east is Brabham, which has benefited from the ‘Exodus to Affordable Lifestyle’ trend. Quarterly sales in Brabham have steadily increased over the past two years from 37 to 90, reflecting a pattern of strongly rising demand. The area benefits from green space and recreation facilities, including Whiteman Park. House prices are typically in the $400,000, with vacancies at 0.5%.

8. Forrestfield

Relatively close to the city compared to most suburbs on this list, the established suburb of Forrestfield is set to benefit from major new infrastructure investment in the area. The City of Kalamunda is expected to benefit to from the Airport Line, which opened in October. Forrestfield also has an array of educational, retail and recreational amenities, and is near major employment zones. Sales activity has increased steadily, an vacancies have dropped to 0.2%.

9. Hocking

Hocking, located in the City of Wanneroo in Perth’s far north, is benefiting from strong growth. In fact, the Wanneroo LGA itself is the fast-growing municipality in WA an fifth nationally. The population is expected to grow by 71% over the next two decades, with new suburbs being created.  Although new-growth regions tend to have high vacancy rates, all Wanneroo postcodes have vacancy rates below 0.5%, including Hocking, which has schools, parks, retail options and benefits from the Yellogonga Regional park nearby.

10. Joondalup

Considered the amenities nucleus of the northern suburbs, the Joondalup CBD offers a hospital, a university campus, government offices, retail and a major transport interchange. This makes it popular with renters, with a vacancy rate of just 0.4%.

Top 10 Best Suburbs to Invest in Perth for 2023

Suburb Median price 1-yr growth 10-yr average annual growth (%pa) Vacancy rate Median rental yield Upfront costs* 20% deposit amount Monthly repayments (P&I) with 80% LVR
Armadale $280,000 16.7% 0.8% 0.4% 6.3% $8,500 $56,000 $1,237
Baldivis $435,000 8.9% 1.2% 0.4% 5.4% $15,143 $87,000 $1,922
Brabham $465,000 19.8% Snr 0.5% 5.0% $16,568 $93,000 $2,054
Ellenbrook $430,000 14.7% 1.5% 0.4% 5.3% $14,905 $86,000 $1,900
Forrestfield $470,000 13.2% 3.0% 0.2% 4.7% $16,805 $94,000 $2,076
Hocking $530,000 7.7% 2.0% 0.3% 4.8% $19,675 $106,000 $2,341
Joondalup $585,000 19.1% 2.2% 0.4% 4.0% $22,288 $117,000 $2,584
Orelia $305,000 14.6% 1.0% 0.3% 6.3% $9,470 $61,000 $1,347
Waikiki $410,000 17.2% 1.8% 0.5% 5.1% $13,955 $82,000 $1,811
Wellard $415,000 4.4% 2.0% 0.5% 5.4% $14,193 $83,000 $1,833

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For the top 10 suburbs in other capital cities check out these articles:

Brisbane, Melbourne, Sydney, Gold Coast and Sunshine Coast.



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