INDUSTRY NEWSNEWSWA

Perth’s median property price grows $325,000 in 20 years

The Perth property market has grown steadily over the last two decades with the median house price increasing by $325,000 in 20 years.

In 2001, the average buyer could purchase a home for just $170,000 – a figure that has seen a sharp increase to $525,000 as of 2021.

Willetton, Medina and Pinjarra were the best-performing suburbs over the last 20 years, with median prices increasing by at least 337 per cent.

Seventeen of the top 20 suburbs all recorded gains in excess of 300 per cent, while western suburb strongholds of Nedlands and Cottesloe have seen their median values grow by $1,543,000 and $1,905,000.

Real Estate Institute of Western Australia (REIWA) President Damian Collins said overall, the Perth market had seen house prices grow 209 per cent during the last two decades.

“Perth is still the most affordable capital city for housing of any state in the country, but there are numerous suburbs that have grown significantly and far exceeded Perth’s overall 20-year price growth trajectory,” Mr Collins said.

“If you’re buying a property with the goal of strong price growth, then location is a crucial factor as the value of a property is inherently tied to where the land is situated.

“Other factors can impact the trajectory of a suburb’s median price growth, like whether there are a lot of renovated properties or new builds in the area, but the bulk of the value will always be tied up in the land.”

Data from REIWA shows the popular family suburb of Willetton recorded the biggest 20-year increase, with its median price jumping from $180,000 in 2001 to $820,000 in 2021 – an increase of 356 per cent.

“Willetton is a popular suburb for families. It has two of the state’s best public high schools in the area which has created a lot of demand and contributed to the strong price growth experienced in the suburb over the last 20 years,” he said.

Of the 20 suburbs that have seen the most growth, nine had median prices above $1 million in 2021.

Seven were priced from $500,000 to $900,000, while four had median house sale prices below $400,000.

Mr Collins said Perth’s high-end market had performed incredibly well over 20 years.

“Unsurprisingly, the luxury end of the Perth market has the biggest share of this list, however overall, there is good variety, with all price points of the market well-represented amongst these 20 suburbs,” he said.

“Owners who purchased houses in these suburbs in 2001 and held onto them would be pleased with the profit they have turned over the last 20 years.”

Source: REIWA

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Rowan Crosby

Rowan Crosby is a freelance journalist specialising in finance and real estate.