Just weeks after Perth recorded its steepest quarterly house price fall on record , 17 family-friendly suburbs have grown to cross the $1 million threshold – with prices in one gaining almost $234,000 in three months.
In a city where the median house price shed almost $90,000 over the quarter to $1.115 million, a surprising collection of owner-occupier suburbs with family-friendly vibes continue to rise – proving the broader downturn isn’t universal, and you can’t put a price on a top school catchment.
Lot 48 Multan Loop, Piara Waters WA 6112
61 Miltona Drive, Secret Harbour WA 6173
While some property punters warn the growth is short-lived and may have already ground to a halt, Domain chief residential economist Dr Nicola Powell says the mere fact that 17 suburbs have soared past the $1 million median mark in defiance of the downturn show Perth’s traditional premium markets have spread as buyers place a premium on location, lifestyle and school catchments.
“There are things that underpin pricing, and one thing you can’t replicate is location,” she says. “There are always areas where buyers will pay a premium.”
In addition, she says, “School zones and family demographics can determine demand, and when a buyer is making a long-term commitment to an area – especially when it’s for school catchment reasons – that’s a long journey.
“And we know that school catchments are a driver for buyers.”
22 Wellman Avenue, Piara Waters WA 6112
In Piara Waters, Aman Singh of The Best Realty says that trend is playing out in real time, with school quality continuing to drive demand despite Perth’s cooling market.
“Piara Waters and Harrisdale have always been in very high demand for a couple of factors, but the most important is the quality of the schools,” he says. “That’s the most crucial thing here.
“The second is the quality of living … and the third is limited land. But to be honest, the one reason it has stayed strong during the downturn is the schools.”
96 Novelli Parade, Piara Waters WA 6112
While Piara Waters is still feeling the impacts of the wider market downturn, Singh says first-home buyers and upsizers are fuelling demand.
“These are buyers who maybe have kids who are three or four [years old] and they want to get into the area before they reach school age.”
Singh’s not surprised the suburb surpassed the $1 million median, and believes its sought-after assets can shield it from the worst of the downturn – but he remains realistic.
5 Nannup Parkway, Piara Waters WA 6112
“Everyone knows the market has slowed down … and that’s contributing to buyers taking extreme amounts of caution right now,” he says.
“So we’re seeing a lot of buyers coming through open homes but not a lot making an offer. They are waiting to see if the market is going to decline further.”
22 Granby Road, Secret Harbour WA 6173
In the coastal suburb of Secret Harbour, where prices have climbed 7 per cent ($68,000) in three months to $1.030 million, schools and access to the coast and infrastructure have also underpinned growth, says Nikki de Rijcke of JW Residential.
“This area is well known for the quality homes and beautiful pockets within the high end, but then there are first-home-buyer areas too, and it’s also a strong owner-occupier suburb,” she says.
“The buyers I’m mostly seeing are families who want a long-term home close to schools and infrastructure. The average tenure is about 15 years here.
“I feel buyers really want quality right now, and they know if they are going to stay in the home for the long term, they want something they can ride out the dip in and not have to do renovations to.”
11 Holloways Ridge, Secret Harbour WA 6173
As for whether Secret Harbour can ride out the wider dip in months to come, De Rijcke says it depends on the mood of those looking for a home.
“Buyer confidence is going to be a major factor – especially after the interest rate rises,” she says.
“But I think people are still waiting for the price to drop further.”
However, Sajad Ahmadyar, of LJ Hooker Thornlie-Canning Vale, warns that Southern River’s colossal quarterly growth doesn’t reflect the current reality.
5 Alaska Crescent, Southern River WA 6110
“Overall, there’s been a huge downturn and the effect is quite massive on the ground,” he says. “So while we reached the $1 million mark, it was an artificial club. As soon as the downturn kicked in, prices dropped [in some brackets] by $300,000.
“But I’d say within the area, the homes that are proving to be resilient come down to price and if they’re in the Harrisdale school catchment.
“There we’re seeing upgrading families … we’re also seeing a lot of buyers trying to take advantage of the market.
“So if homes there are priced effectively and in that good area, they will take two or three weeks to sell.”
Even so, Ahmadyar says buyers remain incredibly price sensitive.
“I reckon we’re feeling [this downturn] all the way from $500,000 up to $1.5 million,” he says.
13 Ramorine Turn, Southern River WA 6110
Powell says the national slowdown has spread and will affect more suburbs.
“We’ve had two back-to-back rate hikes, and that damages borrowing capacity and also weakens buyer confidence,” she says.
“Perth has had quite the shift in a short space of time … and supply is at its highest level in five years, and that says the brakes are on.”
Sarah Webb Sarah Webb is a journalist with almost 20 years’ experience covering general news, business and real estate in newsrooms across the country. She specialises in property markets, housing trends and urban change.
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