Ten Perth suburbs recorded notable rises in median house price in 2018 and bucked the moderate trend of the city’s overall market.
Brabham, Madora Bay and Mount Pleasant were the headliners. Brabham was ranked number one after its median increased 31.8% from $305,000 to $402,000. Madora Bay was on the second spot, with its median price rising 28.7% to $560,000.
REIWA President Damian Collins warned about the potential difference between these figures and the actual values of the properties in these areas.
“Suburbs with newer stock can see changes in median prices that are out of step with the underlying individual property values,” he said.
REIWA also found that of the 10 suburbs on the list, Brabham was the only suburb with a median house price below the overall Perth market median.
Seven of the 10 suburbs, meanwhile, had median house prices above $800,000, with four of those seven being in the $1 million and above price range. These include Mount Pleasant, Claremont, West Leederville, Kensington, South Perth, Alfred Cove and Shelley.
“While sales volumes in the lower-priced end of the Perth market remains soft, activity in the $800,000-plus price range has strengthened, which has created increased demand among buyers and contributed to the improvement in median house price that we’ve seen in suburbs like Mount Pleasant, Claremont, West Leederville, Kensington, South Perth, Alfred Cove and Shelley,” Collins said.
In addition, these suburbs had faster average selling times than the overall Perth market. Properties in Kensington stayed on the market for an average of 41 days. In Claremont and West Leederville, properties were sold after 49 days on average; while in general, it took an average of 69 days to sell a house in Perth in 2018.
Increased demand in Perth’s luxury market is paving the way for more competition between buyers and leading to quicker selling times and higher sale prices, Collins said.
“This data shows that homeowners in these aspirational suburbs who are thinking of selling are well placed to secure a sale at a favourable price,” he said.