You may have seen some media coverage during the week about how property prices in the western suburbs have moved over the past five years. Interestingly, while 15 suburbs have continued to experience price growth, the statistics show seven of the suburbs in these high value areas have experienced a drop is median house prices in the past twelve months. Some of the factors that may be contributing to this apparent decline are that buyers may be exercising greater caution when buying in the current market due to “geopolitical factors” and their impact on share markets.
It’s a timely conversation, as we’re often hearing buyers refer to what a seller originally paid for their home. Coincidentally just last week we undertook some of our own research to get a clearer picture of how values have been tracking in the suburbs we’re most active in—particularly south of the river.
What we found backed up what we’ve been observing on the ground every day: price growth over the past five years has been significant, and interestingly, none of the 11 suburbs we analysed south of the river have gone backwards in the past 12 months. We thought you might be interested in what the data revealed.
Over the past twelve months, while the greater Perth market recorded 16.8% price growth, several of our key suburbs outperformed that figure. Beaconsfield, Bicton, and East Fremantle saw standout results, with annual growth of 21.8%, 21.7%, and 19.8% respectively. That’s pushed the median sale prices in those suburbs to $1.2m in Beaconsfield, $2.01m East Fremantle, and $1.66m in Bicton.
By contrast, Fremantle recorded 11.7% growth, with a median price of $1.34m, North Coogee saw 15.7% growth, reaching a median of $1.9m, and Attadale experienced a more modest 3.4% increase over the past year, bringing its median sale price to $1.82m.
Looking over a longer five-year period (essentially since COVID) the results have been even more striking. White Gum Valley, Bicton, and Hamilton Hill recorded sales price growth increases of 89.6%, 90%, and 91.6% respectively. In fact, with the exception of South Fremantle, where sales data is more limited, every suburb we surveyed has experienced over 70% sales price growth in the past five years. And when we broaden our lens slightly to include Applecross, we find it has outpaced them all, with a 98.9% increase since 2020 – including a remarkable 30% growth in just the past year.
These numbers help explain why we so often hear buyers say things like, “But the owner only paid that much in 2020!” And yes, they’re often right. But the market has moved a long way since then.
Comparative Price Growth Table
We sometimes hear objections from buyers who struggle to reconcile these current asking prices with past sale prices. And that’s understandable. The reality is, however, it’s “the market”, the buyers themselves, driven by supply, demand, and sentiment, that determines value. A persistent shortage of stock, strong competition among buyers, and rising rental costs all continue to push prices upward as buyers compete to secure a home.
For buyers, there’s a well-known saying: “The best time to plant a tree was 20 years ago. The second best time is now.” That rings true in real estate, too. While you can’t change what someone paid five or ten years ago, you can make smart decisions now, with the right guidance, and take advantage of where the market is right now.
Of course, for sellers, these are averages and general estimates. Individual properties may perform differently based on location, condition, land size, orientation, maintenance, improvements and infrastructure developments.
If you’re considering selling, now or in the future, or simply curious about what your property might achieve in today’s market, we’d love to have a confidential discussion with you. Reaching out for a chat or a professional opinion is a great place to start when considering your options.
