Top suburbs to buy and rent in Perth

03 FEB 2021 By Bianca Dabu 11 min read Hotspots

Perth has been hailed as the “fastest-growing” major property market in Australia, following a strong six months.

perth sunset skyline spi

Perth’s median house price increased to $490,000 in January, up 1.6 per cent on the month and 3.8 per cent higher compared with three months ago, making it the fastest-growing major market in the country, the Real Estate Institute of Western Australia (REIWA) has revealed.

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According to REIWA president Damian Collins, as the local economy continues to bounce back and with the pandemic continuing to impact travel, a growing number of Western Australians are looking to get their foot in the market.

Where to buy

More than 8,200 properties were listed for sale on reiwa.com in January, which is a 1.2 increase from December but a 33.3 per cent decline from the previous year.

Properties also continue to sell at a faster rate than last year, with median days to sell sitting 21 days, down from January 2020’s 43 days.

With the median value increasing and stocks depleting, Mr Collins said that Perth has swung into the “seller’s favour”.

“We expect more sellers will see the benefits of listing their properties now rather than later.

“Buyers are needing to act a lot faster to secure a property,” Mr Collins highlighted.

The top five selling suburbs in Perth in January were:

1. Meadow Springs (up 75 per cent)
2. Yangebup (up 67 per cent)
3. Mandurah (up 67 per cent)
4. Alkimos (up 64 per cent)
5. Heathridge (up 44 per cent)

Where to rent

In January, Perth recorded its fifth consecutive month with fewer than 3,000 properties listed for rent.

Compared to January 2020, when there were 5,784 properties available to rent across the capital, January 2021 only saw 2,826 properties vacant, which implies a “severe rental shortage”, according to Mr Collins.

Meanwhile, Perth’s median house increased by $5 to $400 per week over the month.

“With the rental stock levels remaining low and expected to do so in the coming months, combined with low interest rates and expected gross yield growth, we will expect investor numbers to increase in the latter end of the year,” Mr Collins said.

However, he noted that “it is imperative that the WA government keep their promise to end the rental moratorium on 28 March 2021” to entice investors and “ensure the situation does not worsen”.

The top suburbs to rent in Perth based on rental price increases in January were:

1. Subiaco (+$20/week)
2. Thornlie (+$10/week)
3. Alkimos (+$10/week)
4. Morley (+$10/week)
5. Halls Head (+$10/week)

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