Perth property market standing alone as 2023 growth prospect
As the rest of the country is staring down the barrel at the possibility of falling property prices, Perth is tipped to buck this trend and grow in value in 2023 and beyond. In this 3 part blog series, we talk about property investment in Perth and examine each of the key areas with large growth potential.
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Why invest in Perth in 2023 - A research piece by Reventon in collaboration with Terry Ryder, Hotspotting.com
While Big Cities Decline, Perth Remains A Nation-leading Market
Perth continues to be a nation-leading market, showing strong resistance to downturn pressures as it maintains high levels of sales activity and good price growth.
In contrast to trends in the biggest cities, Perth has delivered strong levels of sales volumes in recent quarters, despite all the disruption from interest rate rises, high inflation figures and all that ridiculously negative media.
Every quarter we analyse sales activity for every suburb and town in Australia, because it’s a forward indicator of what will happen with prices. In our latest survey, most of the suburbs in the Greater Perth area are categorised as rising or consistency markets.
This means the Perth market has been consistently strong in every quarter over the past two years, with well over a hundred suburbs categorised as rising markets.
To put that into perspective: in the quarterly surveys from 2015 through to the end of 2020, the average number of rising suburbs in Perth was just 29. So current performance is four times those pre-2021 levels.
As we noted in other recent surveys, many of the stand-out municipalities are at the affordable end of the market. Municipalities, where all or most of their suburbs have rising sales activity, include Armadale, Rockingham, Kwinana, Gosnells, Wanneroo, Swan, and Canning.
This buoyancy at the lower end of the market confirms Perth’s status as the most affordable housing market in capital city Australia. The median house price in Perth ($585,000) is currently the lowest among all the state and territory capital cities in Australia.
The 5 Perth Hotspots - #1 City Of Rockingham
From its recovery status in 2020, Perth’s property market changed into a boom market in 2021 and 2022. Amid the capital’s activity, the suburbs of Rockingham City feature strongly. Every one of the Local Government Areas (LGA’s) nine suburbs classified as rising markets in both the Autumn and Winter 2022 editions of Hotspotting’s Price Predictor Index while seven suburbs were notable rising areas in our Spring 2022 report.
Numerous government incentives for first-home buyers is adding further momentum to Perth’s property market, a factor highlighted across the affordable Rockingham City area where sales activity is rising and prices are responding.
Baldivis has regularly ranked in the top two positions for first-home buyer grants over the last decade. With population growth, an attractive seaside lifestyle, affordable land and access to major job nodes, this LGA is definitely a community for young families.
Fueled by the strong population growth, residential construction is expected to continue well into the 2040s to satisfy increasing demand. The revival in this precinct is supported by some of the lowest vacancy rates in Perth.
City Of Rockingham Highlights:
• Strong population growth
• Affordable housing
• Attractive seaside lifestyle
• New train stations, train links to CBD
• $365 million Defence project
• Rockingham Marina project
• Large industrial areas (job nodes)
• Largest lithium plant in the world
City Of Rockingham Location:
• 40km-50km south of Perth CBD
• 30 minutes to Perth CBD
• 20 minutes to Fremantle
• Many suburbs front the coastline
• LGA: City of Rockingham
