The morbid reason house prices will soar in the western suburbs
Tightly held suburbs in premium pockets of Perth that have an ageing population are tipped to explode in price over the next five years due to death and downsizing.
The Agency real estate agent Corey Adamson predicted the well-heeled western suburbs would experience the biggest jump in prices, a trend already being experienced in City Beach.
“City Beach was owned by the same people for the past 50, 60, 70 years; those properties have just started coming on to the market likely due to death, inheritance, and downsizing,” he said.
“The prices of City Beach have gone through the roof.”
City Beach house prices have risen 10.1 per cent over the year, and 58.8 per cent over the past five, to hit a median $2.7m.
But the biggest price gains over the past five years have been North Fremantle (up 65.7 per cent to $1.5 million), followed by Shenton Park (up 61 per cent to $1.65 million), Cottesloe (up 53.8 per cent to $3.4 million), and Mount Claremont (up 51.6 per cent to $1.8 million).
Adamson said he anticipated upwards price movement in other premium markets such as Fremantle, Mount Lawley, Nedlands and Floreat.
“I think as soon as those people who have owned these properties for a long time either want to downsize or they pass on, those properties are going to come up for sale and those suburbs will go through the roof,” he said.
“Right now they are primed to change hands and that will create a lot of value.”
West Leederville is the only western suburb to decline in value over the past five years to $855,000.
Analysis released by CoreLogic on Wednesday reported that all 302 Perth suburbs saw home values rise over the three months to August.
It is in stark contrast to other Australian states and territories where almost 30 per cent of the 3655 suburbs analysed were in decline, with Melbourne (79 per cent) and regional Victorian suburbs (74 per cent) making up the majority of falls over the quarter.
Values also decreased across more than half of the suburbs in Hobart, Darwin and Canberra.
CoreLogic economist Kaytlin Ezzy said the data showed an incredible turnaround in the Perth market despite high interest rates, cost of living and affordability challenges continuing to bite.
“In the three months to September 2022, 60 per cent of Perth suburbs were declining while in the three months to August 2024, there was not a single suburb analysed where prices had fallen,” she said.
“Across Perth, value increases ranged from a 1.8 per cent rise in Marmion to 10.6 per cent in Henley Brook in Perth’s north-east.”
Properties are selling quicker than a year ago in Perth with the median selling time at 11 days. Stronger selling conditions in Perth has seen the median vendor discount fall to -2.6 per cent.
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