daglish train station
Daglish (train station pictured) is deemed as Perth’s top suburb for long term capital growth. Image – Wikimedia Commons.
  • Daglish tops the list
  • 8 of the top 10 suburbs are located on the river or coast
  • Future growth likely to be driven more by investors data suggests

The inner-Perth suburb of Daglish has topped the list of Perth’s top 10 suburbs for capital growth over the past year, according to Momentum Wealth.

Using data from the Real Estate Institute of WA (REIWA), the data highlights growth over both the past year and over the past ten years.

Daglish, just 4 kilometres from the Perth CBD has witnessed an extraordinary 1-year value growth rate of 50.3%, with 10-year value growth of 56.4%.  Additionally, houses are snapped up quickly, with a median of six days on the market.

Perth’s top suburbs for capital growth

Ranking Suburb Median house price (Sep 21) 1-year value growth 10-year value growth Days on market
1 Daglish $1,367,500 50.3% 56.4% 6
2 Highgate $1,008,000 58.7% 32.6% 51
3 Claremont $1,825,000 40.4% 39.3% 26
4 Bicton $1,255,000 41.4% 34.9% 14
5 Watermans Bay $1,220,000 41.9% 34.1% 18
6 Waterford $1,200,000 31.9% 43.3% 56
7 Cottesloe $2,550,000 32.1% 41.7% 17
8 Ascot $840,000 35.5% 20.9% 43
9 Salter Point $1,355,000 29.2% 39.3% 20
10 Trigg $1,507,500 31.1 55.8% 20
Greater Perth $520,000 8.3% 9.5 21

 

Second-placed Highgate – reckoned to be Perth’s smallest suburb for property – tops the list for price growth during the 12 months to November 2021. Over the past 10 years, however, it lags behind Daglish and houses are on the market for 51 days – 45 days longer than Daglish.

perth elizabeth quay
Image – Canva.

So what do these ten suburbs have in common?

All the suburbs are high-end, premium suburbs with all bar Daglish and Highgate located on either the coast or river.

“This reflects the market recovery in Perth, which has been driven by owner-occupiers to date. Homeowners have seen their equity rise, and many are seizing opportunities to upgrade into blue ribbon suburbs,” observed Jennifer Wakeman, General Manager of Momentum Wealth.

“In addition, we’re seeing strong demand from returning expats seeking homes in premium suburbs with an appealing combination of lifestyle plus proximity to the Swan River and the ocean.”

In addition, the top 10 neighbourhoods all have easy access to well-regarded public and private schools, significant green spaces and are close to popular employment nodes – Daglish, for example, is a neighbouring suburb of Subiaco.

Additionally, the top 10 suburbs typically have homes that are tightly held.

“Properties rarely come onto the market, and there are very few lots approved for future development,” added Ms Wakeman.

“This creates scarcity, and when coupled with strong demand, it is inevitable that values will rise.”

Will investors lead the way for 2022?

While data from the Australian Bureau of Statistics (ABS) shows owner-occupiers have driven the demand in price growth over the past 12 months, recent data hints investors will return to the scene next year, with lending to investors increasing by 87% this year alone.

Momentum Wealth itself has witnessed a significant 108% rise in interstate enquiries for Perth property during the first quarter of FY22 compared to the last financial year.

Ms Wakeman added this has been driven by an array of factors.

“Given rising affordability pressures in the more expensive east coast markets, many interstate buyers are looking towards alternative locations for investment – as one of the cheapest capital cities to buy, and given the continued opportunity for both growth and yield, Perth stands out as a natural choice for many of these buyers.”

“The fundamentals behind Perth’s property market are all in great shape. The WA economy grew 4.3% in 2020-21 – the strongest of all states for the second year in a row.”

She added the booming WA economy – which grew by 4.3% during 2020-21 – is a major pillar influencing the Perth property market.

“This growth is creating job opportunities, and WA now has the second-highest rate of interstate migration nationally behind Queensland – and all these people need somewhere to live.”

“All in all, this is leading to an exciting outlook for Perth in 2022”.

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