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Deciding where to buy an investment property is a big decision. Location is a crucial factor when purchasing property, especially when buying it as an investment.<\/p>\n
Deciding where to buy an investment property is a big decision. Location is a crucial factor when purchasing property, especially when buying it as an investment.<\/p>\n
The value of a property is inherently tied to where the land is situated. You could have two identical properties on the same size land in two different suburbs worth very different prices, so having a suburb-level understanding of how a market is performing is critical.<\/p>\n
The Perth property market saw 18 per cent price growth during the year to September 2021, however, REIWA\u2019s analysis shows this growth rate was not spread evenly across the metro area. Some pockets experienced growth that met or exceeded the overall Perth market figure, while other areas were subject to lower growth rates.<\/p>\n
Whilst it may be tempting to focus attention on suburbs that have seen the strongest growth, it is sometimes the suburbs lagging in price growth that offer investors the most potential. They often have more ground to make up, especially if the suburb has high sales volumes and fast median selling times.<\/p>\n
So how do you determine which suburbs are poised for growth? A good indicator is to look at sales volumes. Strong sales performances are usually indicative of future price growth as this demand usually leads to prices rising as stock is absorbed. While this indicator doesn\u2019t cover all factors in assessing the suburbs poised to perform strongly, it certainly identifies suburbs worthy of further consideration.<\/p>\n
To help determine the suburbs that could be poised for strong price growth, REIWA conducted analysis of the Greater Perth region to see which suburbs had seen the lowest price growth during the year to September 2021, despite recording a 50 per cent or more increase in sales.<\/p>\n
Here are the top 10 Perth suburbs that could have solid potential for future price growth based on this analysis.<\/p>\n
Melville tops the list of suburbs poised for price growth, with its median house sale price having grown just 1.6 per cent in the year to September to $874,000, despite recording a 51 per cent increase in sales. It also has a fast median selling time of 10 days, the quickest on the list (and a week quicker than the Perth median selling time of 17 days). Melville is located 15 kilometres south of the Perth CBD.<\/p>\n
Sinagra is second on the list, with its median house sale price having grown just 3.4 per cent in the year to September to $460,000, despite recording a 73 per cent increase in sales. Sinagra is located 30 kilometres north of the Perth CBD and has a median selling time of 15 days.<\/p>\n
Madeley comes in at number three, with its median house sale price also having grown just 4.3 per cent in the year to September to $605,000, despite recording a 62 per cent increase in sales. Madeley is located 21 kilometres north of Perth and has a median selling time of 17 days, which is equal to the overall Perth region.<\/p>\n
Waikiki is fourth, with its median house sale price having grown just 4.3 per cent in the year to September to $365,000, despite recording a 51 per cent increase in sales. Waikiki is located 53km south of Perth and has a median selling time of 18 days.<\/p>\n
Round out the top five is Alkimos, with its median house sale price having grown just 4.5 per cent in the year to September to $418,000, despite recording an 84 per cent increase in sale. Alkimos is located 43 kilometres north of Perth and has a median selling time of 21 days.<\/p>\n
Bentley is sixth on the list, with its median house sale price having grown just 4.7 per cent in the year to September to $450,000, despite recording a 100 per cent increase in sales \u2013 the largest sales growth rate on the list. Bentley is located 10 kilometres south-east of Perth and has a median selling time of 42 days.<\/p>\n
Pearsall is seventh on the list, with its median house sale price increasing just 4.7 per cent during the year to September to $450,000, despite recording a 76 per cent increase in sales. Pearsall is located 23 kilometres north of Perth and has a median selling time of 13 days \u2013 the second fastest on this list.<\/p>\n
East Cannington comes in at number eight, with its median house sale price also having grown just 4.7 per cent during the year to September to $450,000, despite recording a 60 per cent increase in sales. East Cannington is located 13 kilometres south-east of Perth and has a median selling time of 18 days.<\/p>\n