Perth’s overall house prices have declined to 2006 levels, but values in the suburbs closer to the CBD rose over the past decade, according to a report by The West Australian.
A study by CoreLogic and Aussie Home Loans showed that the capital’s housing market had been in “an entrenched downturn” since mid-2014 and had already recorded a lower decrease this year.
The good news? Dwellings in many suburbs within 10km of the CBD logged a rise in value over the past 10 years. Many areas posted a growth of nearly 20%.
The upward trend is a reflection of the supply and demand in the city. “Obviously, there is relatively good demand for suburbs close to the city, with its better amenity, close to schools and public transport, close to cafes. But, at the same time, supply is quite low. Supply in some of the outer suburbs, with new housing estates opening up, is far greater,” Real Institute of Western Australia President Damian Collins said.
The majority of people preferred to live close to the city, and for them, it also made financial sense, said The West Australian.
The research revealed that Perth buyers were in the housing driver’s seat, with the average selling time jumping to 63 days.
Rental markets, meanwhile, had slightly tightened. This means that the population could grow and result in an overall improvement in housing demand.
Nineteen of Perth’s 20 most affordable suburbs had median house prices of less than $300,000. Six of the suburbs were in the City of Kwinana and five were located in the City of Armadale. Medina held the top spot on the list, with a median value of $232,639.
West-minster ($366,534) and Nolla-mara ($371,826) were the cheapest options within 10km of the CBD.
Eight of the country’s top 10 cheapest homes were in WA regional towns, led by Mt Magnet ($37,497), Laverton ($39,923), Meekatharra ($40,433) and Morawa ($41,569).