The number of suburbs selling homes for more than a million dollars has surged in Perth despite the mining boom’s demise.
New figures from the Real Estate Institute of Western Australia indicate that Perth is now host to over 200 suburbs where homes are selling for more than a million dollars, after 40 new suburbs leaped onto the list in just the past year.
These new suburbs include Bassendean, Rockingham, Bayswater, Canning Vale and Innaloo, as well as the inner-Perth suburb of Northbridge, which has traditionally been beleaguered by its reputation as Western Australia’s answer to King’s Cross.
As recently as 2008, only 122 suburbs in Western Australia saw sales of homes for prices in excess of a million dollars.
According to David Airey, president of the Real Estate Institute of West Australia, proximity to either the Perth CBD or the Swan River has helped to pushed a number of suburbs into the list, such as Bayswater with its potential for waterfront views.
Airey also points out that a “wave effect” is lifting home prices in traditionally modest suburbs situated next to more expensive areas. Innaloo is a classic example – the residential, light industrial and commercial area saw four homes sell for more than $1 million in 2013-14, benefiting from its location next to the upmarket suburbs of Gwelup and Doubleview.
Coastal suburbs continue to prove popular, with the northern seaside suburb of Iluka logging 21 sales above the million dollar threshold.
Western Australia’s property market was perhaps one of the biggest beneficiaries of the nation-wide mining boom, giving the number of people in the mineral-rich state who are directly employed the resources industry. The lucrative salaries enjoyed by these workers has contributed to inflation across a broad range of economic sector in Australia’s far west, including real estate.
The median home price in Perth’s metropolitan area rose to $550,000 last year on rising demand from first home purchasers as well as investment buyers. While the conditions have since weakened as result of the mining boom’s demise, the momentum produced by last year’s robust market has resulted in a rise in the number of million dollar homes sold.