Near CBD is central to high end

The central region of Perth continues to dominate the high-end property market, home to more than 30 suburbs with a median house price of more than $1 million.

Perth’s central region, as defined by the Real Estate Institute of WA, includes 119 suburbs bound by council boundaries in Stirling, Bayswater- Bassendean, Belmont, Canning, Melville, Fremantle and the coast.

REIWA’s September quarter figures showed that 32 Perth suburbs recorded a median house price of more than $1 million, with all but one found in the central region. The exception is North Coogee in the south-west outer region with a median of $1.26 million.

Realmark Western Suburbs director and licensee Adam Gilbert said on face value, the data suggested the central region was less affordable than outlying regions, however buyers shouldn’t dismiss all central suburbs because there were still some very affordable homes for sale.

“Given the size of the central area and diversity of suburbs’ demographics and services, I think there are bound to be significant differences in how individual suburbs perform, ” he said.

While the central region predominantly drew trade-up buyers, it wasn’t out of reach for first- homebuyers, with many younger buyers staying home longer to be able to afford something in the area they desired.

Ryan Vickers, of Propell National Valuers, believes the central region is the least affordable in Perth, according to the REIWA data, driven by high demand to be close to the CBD.

But he said it wasn’t unobtainable for first and second-homebuyers to call home.

“With the Perth central region covering such a broad area, there is the option for first-homebuyers to purchase an older style, small property in one of these fringe areas and build up equity in the property before moving closer to the CBD and into a more appealing property, ” Mr Vickers said.

“The data indicates location, and more specifically, proximity to the CBD, will always be a major factor driving demand and therefore prices in the Perth market.

“The scarcity of land around the central region drives up prices further as purchasers do not have the option to buy land and must compete with other buyers for an established property.”

Caporn Young Estate Agents principal Richard Young said the premium central region prices showed location was the key driver in the Perth market.

“Despite recent comments the Perth property market may be slowing, a number of prime suburbs continued to perform strongly in the past year — such as Swanbourne (up 19.7 per cent), Watermans Bay (up 16.4 per cent), Coolbinia (up 15.6 per cent) and Claremont (up 14.1 per cent), ” he said.

“Over the coming year, I would expect the suburbs of North Beach (median house price of $950,000) and Como ($950,000) to join the million dollar club as properties in these prime suburbs are currently undervalued.”

Mr Gilbert anticipated growing areas such as Carine, Innaloo and Doubleview to join the list while Mr Vickers had high hopes for Waterford, with a median house price of $985,000 in the September quarter.

“With the recently completed Cygnia Cove development (in Waterford), it is not unrealistic to assume the resales of these properties will achieve about $1 million, which will drag the median house price over the threshold, ” Mr Vickers said.

The scarcity of land . . . drives up prices.