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2016 marked a turnaround for the Perth property market and it could have a flow-on effect in the new year.
QWest Paterson director Rowan Hemsley says agents in Perth, using CoreLogic’s data, can predict the areas investors will flock to this year.
“The data shows that the suburb of Swanbourne recorded the highest median value growth during 2016,” Mr Hemsley said.
“This is reflective of a general upturn in the market across the western suburbs where buyers are recognising improved value for money as prices have come down somewhat over the last couple of years.”
While Perth has been considered a market to avoid, largely due to a downswing in the Western Australian economy, it could be the city to watch as the property cycle had reached its lowest point and could soon begin to climb.
“Overall, while the Perth property market remains sluggish, there are opportunities for those willing to do the homework and find the places that are offering strong growth despite tough conditions,” Mr Hemsley said.
Apart from Swanbourne, he suggests keeping an eye out on Cockburn, North Coogee which recorded the second-highest median value growth in 2016, and Hammond Park and Coolbellup, both of which feature in the top growth ten suburbs in the next five years.
“Cockburn is a diverse local government area that includes transit-oriented development at higher densities around the train station, along with high-end coastal property in the likes of North Coogee,” Mr Hemsley said.
“This quality development activity has had a knock-on effect to surrounding areas in Cockburn such as Hammond Park and Coolbellup that are benefiting from a lift in housing values.”
Mr Hemsley also said Perth is home to large rental yields as a result of the low house prices, something that will appeal to investors.
“Suburbs such as Medina, which was listed at number one [for median value growth over five years], are well located in terms of proximity to the Kwinana train station, access to the freeway and employment nodes in Rockingham and Kwinana,” Mr Hemsley said.
“With a median house value of $257,819, that is a relatively affordable investment opportunity given the median house price in Perth is close to $500,000.”
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