Urban return: From Balcatta to Wellard, the Perth suburbs primed for price growth
Property experts have forecast a return to city living and a rise in the market share of previously maligned suburbs as Perth’s three-year property boom shows signs of moderation.
While the Perth market remains vibrant, it’s no longer a national leader in sales momentum according to Canstar’s annual Rising Stars report, which examined a series of forward-looking indicators to provide insight into the markets primed for price growth in 2024.
Balcatta has been named a rising star in a new property report. Credit: Ross Swanborough
This included sales volumes, price growth, vacancy rates and rental growth, plus infrastructure spending and planned amenities.
Canstar money expert Effie Zahos said Perth scored highly on three of the metrics, but was relatively weak on two others, and the overall ranking for Perth was fourth, although it was close behind the top three (Brisbane, Adelaide and Sydney).
Zahos said affordability and lifestyle benefits were the biggest drawcards for regional living recently, but property prices have surged in popular regional areas as more Australians made the exodus from capital cities.
“The allure of urban living is piquing our interest again as many companies mandate the return-to-office with a range of perks such as flexible work options, office catering, subsidised transport or parking incentives, social events, in-personal professional development opportunities,” she said.
“Add to this the thriving economies, ongoing infrastructure spending and big-name events hitting our key cities, and it’s easy to see why our capital cities are shining – the lights are back on for sure.”
The report, prepared with property podcast Hotspotting, predicted prices would likely rise again in 2024, but the WA capital was unlikely to be the national leader this year.
Hotspotting property expert Terry Ryder said there had been a shake-up in the rankings of Australian real estate markets when comparing results from the last few years to the latest Rising Stars Report.
“While the Perth market remains vibrant, it’s no longer a national leader in sales momentum,” he said.
“Prices will likely rise again in 2024, but the WA capital probably won’t be the national leader this year.”
Ryder said there continued to be good growth options for people buying in Perth, but they would need to be more selective with their choice of location in 2024.
Among the “rising star” suburbs was the middle-ring northern suburb of Balcatta.
The report found homes in Balcatta typically sold in two weeks, with 275 sales in the past year and prices rising 10 per cent.
Banksia Grove in Perth’s far north has featured among the nation’s leading population growth areas. It recorded 240 house sales in the past year, with the median price lifting 11 per cent to $495,000 and houses typically selling in less than a fortnight.
Belmont, with a median house price of $545,000, represented good value considering its proximity to both the Perth CBD and airport.
More than 200 homes have sold in the past 12 months, usually within three weeks, and the vacancy rate is among the lowest in a tight Perth rental market.
Another precinct heavily targeted was the City of Armadale in Perth’s far south. Harrisdale was popular for its access to large green spaces and its good basic infrastructure and amenities, including the Tonkin Highway link to central Perth.
House prices have grown 10 per cent in the past year, based on more than 200 house sales, with average time on market just 10 days.
Perth was the national leader on price growth in 2023, according to CoreLogic figures published in January 2024.
Its median house price rose 15.6 per cent, compared to the national average of 8.6 per cent, and its median unit price increased 12.4 per cent, well ahead of the national average of 6.4 per cent.
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