Mount Nasura, Wellard and Ashby are among 10 Perth suburbs with potential for solid price growth in 2022, following a strong year of sales growth in 2021.
REIWA President Damian Collins said the suburbs that featured on this list were suburbs that had recorded relatively low price growth during 2021, despite sales volumes increasing by 50 per cent or more in each area.
It is often the suburbs that have high sales volumes and lagging prices that offer the best growth potential. They tend to have more ground to make up, especially if the suburb is in high demand with buyers, Mr Collins said.
While all 10 suburbs recorded price growth during 2021, reiwa.com data shows their growth rate was below the overall Perth market growth rate of 13.1 per cent.
Where we see the potential in these suburbs is looking at their sales figures, all of which saw a significant increase in sale in 2021. While there is no crystal-ball for property, suburb-level analysis of how individual areas are performing helps provide insight as to where the next big growth areas will be, Mr Collins said.
First home buyers driving demand
Of the 10 suburbs on the list, eight have median house sale prices below $500,000.
This indicates demand is largely being driven by first home buyers who have taken advantage of Perth’s affordable prices to secure their spot on the property ladder in these accessible suburbs, Mr Collins said.
Additionally, four suburbs on the list had median selling times in 2021 below the Perth median of 14 days.
Kelmscott (nine days), Seville Grove (12 days), Madeley (12 days) and Mount Nasura (13 days) all have very fast median selling times. Fast-selling times and high sales volumes are a very promising recipe for future price growth, Mr Collins said.
“With the Perth home values expected to increase a further 10 per cent in 2022, it will be interesting to observe how these suburbs perform. They are clearly in high demand with buyers and there is plenty of ground for them to make up in terms of price growth.
10 Perth suburbs with strong price growth potential
| Suburb | Median house sale price | Median house sale price growth 2021 | Growth in sales volumes 2021 |
|---|---|---|---|
| 1. Mount Nasura | $475,000 | 0.6% | 50% |
| 2. Wellard | $415,000 | 4.0% | 80% |
| 3. Ashby | $484,000 | 4.1% | 50% |
| 4. Madeley | $610,000 | 5.2% | 75% |
| 5. Bentley | $455,250 | 5.9% | 65% |
| 6. Kelmscott | $350,000 | 6.1% | 53% |
| 7. Alkimos | $430,000 | 6.2% | 78% |
| 8. Seville Grove | $355,000 | 6.8% | 89% |
| 9. Mount Helena | $540,000 | 6.9% | 67% |
| 10. East Cannington | $452,500 | 7.7% | 62% |
