Perth real estate: Experts tip WA’s cheaper suburbs to lead nation in surging property values

Nearly a third of the 50 suburbs forecast to have the highest price growth in the country next year are located in Perth and Peel, according to a national group of property experts. The list of 15 WA suburbs expected to experience the steepest price rises in 2024, compiled by Smart Property Investment, comprises mostly of cheaper suburbs in the outer suburbs, such as Gosnells. A spokesman for annual Fast 50 list, Phillip Tarrant, said buyers were gravitating to cheaper areas because of lending restrictions and affordability issues. The trend had catapulted some surprising suburbs on to the national Fast 50 list, including Armadale - which has also been praised by several other east coast property investors — as well as Bertram, Camillo, Forrestfield, Gosnells, Maddington, Orelia, Port Kennedy, Rockingham and Wellard, along with median-price Hamersley and Kalamunda. Falcon, Greenfields and Mandurah are also on the list of suburbs expected to outperform in 2024. Mr Tarrant said east coast investors were helping to fuel momentum in WA, with many buying in the west in the belief it was still on the rise while the Eastern States had mostly already peaked. “It’s absolutely WA’s time to shine in the property market,” Mr Tarrant said. Only Queensland had a bigger number of suburbs on the Fast 50 list with 18 suburbs, followed by 10 in South Australia, four in NSW, two in Victoria and one in Tasmania. The list was coordinated by 14 property professionals from across Australia and is based on their expectations of property price growth in 2024. An initial list of 180 suburbs with strong investment prospects were whittled down to the Fast 50, based largely on fundamental features like proximity to rail lines, the city and the coast, block sizes and amenities like shops and recreational facilities. The experts gave some consideration to forecast rental yields, but the list is based on those suburbs anticipated to sustain the biggest capital gains. The expectation that cheaper suburbs will outperform next year fits in with a previous claim from renowned local property analyst Gavin Hegney that WA has been in a “top-down boom” which had started in the more expensive suburbs. Mr Hegney pointed out about two years ago that the boom in top-tier coastal areas such as Cottesloe and City Beach would filter across the State. Over the years, prices in the more exclusive suburbs began stabilising while those in mid tier, and then cheaper suburbs, started to outperform. East coast-based forecasts in late 2022 that Armadale - once dubbed the worst town in Australia in another poll - would this year rake in property gains were met with a mixed response from locals. But the residents of postcode 6112 have had the last laugh, with prices jumping nearly 13 per cent over the past year. This year, much-maligned Gosnells has joined the list of outperformers, with property experts praising its location only 20km from the city and easy access to the city via the Gosnells rail line. The Fast 50 experts also noted the suburb’s raft of amenities, including a performing arts centre, a leisure centre, and numerous libraries in the the Gosnells town centre, as well as its parks, schools, and shopping centres. “Gosnells has been earmarked as an ideal destination for families and first home buyers who are after affordable living, across a range of established homes and new developments,” the Fast 50 report said. Local resident Apneet Kaur, who moved to Gosnells a couple of months ago, said it was an attractive area to buy. “A lot of my friends bought here because it’s quite cheap and it also flows into the city,” she said. “Secondly, the rail line is going to be coming through here, which is a big bonus.” Ms Kaur said she was attracted to the area because it was quieter than suburbs closer to the City. “It’s a good area to live in because all the amenities are very close by (and) it’s also very peaceful.” She believes Gosnells had unfairly been given a bad rap. “Sometimes I work late nights and it’s not a dangerous area at all,” she said. “It’s very, very safe and the police station is on the main strip if there is any trouble. “When you don’t live here people say that it’s not a safe area but when you actually move in it’s a good area to live in.” Mr Tarrant said the consensus among the 14 experts was that there was still momentum in the overall WA property market, partly due to anticipated population increases. “This is by no means the end (of price increases) for Perth,” he said. The list shows a big focus on the Peel region, with three suburbs in the area expected to outperform in 2024. The Peel region’s Falcon and Greenfields are tipped for steep growth as a mecca for families, retirees and water enthusiasts, while Mandurah is praised as “a thriving coastal city that offers a vibrant lifestyle, stunning beaches, and a bustling dining and entertainment scene.” The most expensive suburb on the list is Kalamunda, with a median of $713,000.