Budget-Friendly Areas Lead Perth’s Property Price Growth
New data reveals a clear trend emerging in the Perth property market with price growth being spearheaded by specific urban fringe and affordable inner-city areas.
While Perth’s latest quarterly property price growth of 0.7% might appear modest, a closer look at the data shows the areas that are outperforming the broader metropolitan region.
Over the past three months, dwellings in the lowest 25% of value in Perth have seen a price increase of 1.6%, translating to 6.4% annualised growth.
Contrast this with the top 25% of property values, which only recorded a 0.3% increase over the same period, or a mere 1.2% annualised growth on that basis.
This clearly indicates the more budget-friendly areas are currently the engine room of Perth's price growth.
So, which specific areas are experiencing this significant upward trajectory?
Top 10 Perth Areas for Annual Capital Growth:
- Swan (14.2%)
- Mundaring (13.3%)
- Kwinana (12.9%)
- Wanneroo (12.6%)
- Kalamunda (12.6%)
- Bayswater-Bassendean (12.6%)
- Belmont-Victoria Park (10.7%)
- Perth City (10.7%)
- Stirling (10.1%)
Urban Fringes and Cheap Inner-City Areas Driving Perth Price Growth
Looking at the top 10 list, the top five spots are dominated by areas in Perth’s urban-fringe, including Swan, Mundaring, Kwinana, Wanneroo, and Kalamunda, all with median dwelling values ranging from approximately $635,000 to $835,000.
Interestingly, the latter half of the top ten includes cheaper inner-city regions such as Bayswater-Bassendean, Belmont-Victoria Park, Perth City, and Stirling, with median values between around $770,000 and $864,000.
It's important to remember that these figures are based on Statistical Area Level 3 (SA3) data, which encompasses a collection of individual suburbs.
Rent Choice general manager Clare Christiansen said the data showed people were seeking more affordable areas.
"What this data really highlights is the strong demand for more accessible housing options," Clare explains. "Whether it's the affordability of the urban fringes or the relative value still to be found in certain inner-city pockets, buyers are clearly prioritising value for money."
What Does This Mean for Property Investors?
While the widespread, rapid price growth of recent few years might be moderating, the current market still presents opportunities for savvy investors, particularly those with a long-term perspective.
"On the ground, our property managers are still witnessing significant competition for well-priced rental properties in areas with limited supply," Clare said.
However, she also points out a key trend emerging in 2025.
"We're observing a different dynamic in new housing estates. With many properties being built and completed simultaneously, the rental market in these areas can be more competitive for landlords, as renters can have more choice. It's crucial for investors in these areas to price their properties strategically based on local supply and demand."
Furthermore, Clare advises investors to be mindful of the potential impact on property prices from this increased housing supply in these newer estates.
"Keeping an eye on the pipeline of new developments is essential when considering purchasing an investment property in these areas."
