The Perth suburbs about to join the million-dollar club
By Sarah Brookes
Perth’s property market is on a remarkable upswing, with CoreLogic reporting a 21 per cent annual increase in median property values over the year to April – which means a number of suburbs are poised to join the million-dollar club.
Resolve Property Solutions buyers’ agent Peter Gavalas said a potent combination of soaring demand and limited supply had underpinned the impressive growth, with the city’s population growing 3.6 per cent during the 2022-23 financial year, according to the Australian Bureau of Statistics.
He said compounding this was the incredibly tight rental market with a citywide vacancy rate of just 0.6 per cent in April, according to SQM Research.
“Cracking the $1 million median price barrier is a big deal; that shows a suburb has become highly sought after and upscale,” he said.
“We’re seeing this happen in more areas as the market continues to grow.
“Before the pandemic, million-dollar suburbs were rare, but thanks to the extraordinary price growth that has happened in the past few years, the number … has sharply increased.”
According to REIWA the number of suburbs in the million-dollar club grew 14.5 per cent in 2023, to total 63.
Looking ahead, Gavalas predicts eight more suburbs are on the brink of surpassing this threshold.
“There are certain key factors that signal a suburb’s potential to break into the million-dollar median category – these include proximity to the city, river or beach, adjacency to more affluent suburbs, good schools and strong infrastructure,” he said.
“Areas with high median incomes are crucial because they underpin the borrowing capacity needed to sustain higher property values. As incomes grow, so does the ability of residents to invest in real estate in these areas.”
Based on these criteria and REIWA data, Gavalas has identified eight suburbs likely to join the million-dollar club soon.
Connolly – median $900,000, a northern suburb known for its golf course and proximity to the coast.
Padbury – median $805,000, popular due to its community feel and excellent schools, making it a great choice for families.
Mindarie – median $960,000, this coastal suburb is known for its marina and vibrant local life.
Victoria Park – median $865,000, with proximity to Perth’s CBD and eclectic shopping and dining scenes making it a hit with professionals.
Riverton – median $838,000, a tranquil environment close to the Canning River, appealing to those seeking a quieter lifestyle.
Leeming – median $940,000, noted for its well-established schools and strong family-oriented community.
Beaconsfield – median $950,000, a blend of old and new homes and closeness to Fremantle enhance its appeal.
Bedford – median $870,000, appreciated for its large blocks and character homes, attracting a diverse range of buyers.
CoreLogic research director Tim Lawless said Perth home values lifted by 2 per cent in May, the equivalent of the median dwelling value rising by more than $12,000 month-to-month.
“The number of properties available for sale in Perth remain more than 40 per cent below the five-year average for this time of the year,” he said.
“Inventory levels remain well below average despite vendor activity lifting relative to this time last year.
“Fresh listings are being absorbed rapidly by market demand, keeping stock levels low and upwards pressure on prices.”
REIWA chief executive Cath Hart said the suburbs that saw the most median house sale price growth in May were Stirling (up 2.9 per cent to $1,080,000), Beckenham (up 2.7 per cent to $585,500), Bertram (up 2.7 per cent to $554,500), Armadale (up 2.4 per cent to $445,500) and Secret Harbour (up 2.2 per cent to $670,000).
“Nedlands, Girrawheen, Camillo, Craigie and Butler were also among the top performers, recording growth of 1.9 per cent or more over the month,” she said.
Houses sold in a median of eight days in May, unchanged from April and four days faster than a year ago.
Hart said active listings settled at 3,291 at the end of May, 4.5 per cent lower than April and 41.5 per cent lower than a year ago.
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