Twenty-five years is a long time in real estate, but it’s been worth the wait for Perth home owners who have enjoyed some outstanding gains on home values since 1993. In fact, an exciting new report by Aussie Home Loans and CoreLogic shows that Perth holds 12 spots among the nation’s top 100 suburbs for price growth – just behind Sydney (25 places) and Melbourne (41).
Back in 1993 the median house price in Perth was a hard-to-believe $96,000. Today, buyers are looking at a median value of $488,000. That works out to average annual gains of 6.7%, and according to CoreLogic estimates, in another 25 years, the median Perth house value could reach $2.48 million!
South West WA leads the state
But it’s the suburb of Leschenault in south west WA that takes the gong for the second highest rate of house price growth across Australia since 1993. This outer suburb of Bunbury has racked up price growth of an amazing 1,365% over the last 25 years. To put those gains in perspective, in 1993 the median house price in Leschenault was a tiny $36,000. These days, you can expect to pay around $527,500.
It turns out the south west corner of the state is something of a high achiever in the property price growth stakes, filling five of the nation’s top 20 spots. Other suburbs in the region that have recorded tremendous price gains since 1993 include Meadow Springs (Mandurah, up 1,221%), Glen Iris (Bunbury, 1,219%), Gelorup (Capel, 1,132%) and Usher (Bunbury, 1,117%).
Perth’s top performing suburbs
Back in Perth, property price growth has been just as spectacular among a number of the city’s suburbs.
The top spot goes to Leda in the Kwinana area, with 25-year house price growth of 1,193%, that’s a gain averaging 10.8% annually, and it’s taken the median house value from just $24,000 in 1993 to $312,000 today.
In dollar terms, it’s hard to go past Cottesloe where a house would have cost about $212,500 back in 1993. Today the median value is $2.1 million, adding up to total growth of 914% over the last quarter century.
Houses outshine apartments
Houses rather than units have tended to deliver the biggest price gains in Perth, with apartments in just one suburb making the city’s top 20 for price growth.
That accolade goes to West Leederville, where the median unit value has soared from $62,000 in 1993 to $529,000 today – a long term gain of 753%.
Perth delivers surprises
The home price gains in Perth are all the more rewarding because the city has copped the impact of the mining downturn in recent years.
As CoreLogic notes, “Suburbs of Perth are a bit more surprising, considering dwelling values have been tracking lower since 2014. Prior to the mining downturn, Perth was one of the hottest markets in Australia with dwelling values substantially outperforming the broader market between 2003 and 2013”.
Perth, we salute you! No doubt the next 25 years will deliver plenty of surprises too.
Discover which suburbs in Western Australia – and across the nation, have been the top performers over the past 25 years by viewing the full Aussie/CoreLogic 25 years of housing trends report or contact your Aussie Broker for a free copy.
