The southern suburbs dominating the market
23 November 2023"This week REIWA Research has crunched the numbers to look at the top performing suburbs south of the river."
There is often a lot of debate about which side of the river is best: north or south. For home owners this is a matter of personal preference, for investors other considerations, such as house price, rental growth and rental yield, come into play.
This week REIWA Research has crunched the numbers to look at the top performing suburbs south of the river. Whether you’re looking to buy, rent or invest you can see where all the action is.
Next week we will review the top performers north of the river.
House price growth
In the year to September 2023 the southern suburbs shone when it came to capital growth. The top 10 suburbs for median house price growth all recorded increases over 15 per cent, well above the 5.6 per cent recorded for the greater Perth market.
Shelley saw the highest growth over the year, with its median house price increasing 29.7 per cent to $1.14 million.
Further south and closer to the coastline, second-placed Parmelia had similarly high price growth at 20.4 per cent, but a more affordable median house price of $395,000, which might be more appealing to home owners and investors.
With the exception of Shelley, all the suburbs on the list had a median house price below the greater Perth median of $570,000, recorded at the end of September.
Top 10 suburbs for house price growth
| SUBURB | ANNUAL MEDIAN HOUSE PRICE (SEP 2023) | ANNUAL HOUSE PRICE GROWTH | SELLING DAYS (Q3 2023) | |
| 1 | Shelley | $1,145,000 | 29.7% | 20 |
| 2 | Parmelia | $395,000 | 20.4% | 6 |
| 3 | Cooloongup | $447,000 | 19.3% | 4 |
| 4 | Hillman | $409,000 | 18.6% | 3 |
| 5 | Orelia | $400,000 | 18.2% | 6 |
| 6 | Armadale | $349,000 | 16.3% | 5 |
| 7 | Port Kennedy | $510,000 | 15.9% | 7 |
| 8 | Coodanup | $397,000 | 15.7% | 8 |
| 9 | Camillo | $368,000 | 15.5% | 6 |
| 10 | Leda | $420,000 | 15.1% | 5 |
Source: REIWA. Houses, minimum 28 sales in year to Sep 2023, land size < 1 HA, as at 19 Oct 2023.
Fastest selling
Buyers have been snapping up houses south of the river, with homes in the 10 fastest selling suburbs selling in under a week. All the suburbs are priced below the Perth median house price and the incredible speed of sales suggests buyers are seeking value and are acting quickly when they see it.
Seville Grove was the fastest selling suburb with a median time on market of just three days. The suburb is particularly popular with young families looking for an affordable home in close proximity to nearby amenities in Armadale, which placed third on the list.
Most of the suburbs also recorded strong price growth over the year, with Parkwood and Lakelands recording moderate growth.
Top 10 fastest selling suburbs
| SUBURB | ANNUAL MEDIAN HOUSE PRICE (SEP 2023) | ANNUAL HOUSE PRICE GROWTH | SELLING DAYS (Q3 2023) | |
| 1 | Seville Grove | $445,000 | 15.0% | 3 |
| 2 | Cooloongup | $447,500 | 19.3% | 4 |
| 3 | Armadale | $349,000 | 16.3% | 5 |
| 4 | Greenfields | $410,000 | 14.4% | 5 |
| 5 | Parkwood | $565,000 | 4.1% | 5 |
| 6 | Leda | $420,000 | 15.1% | 5 |
| 7 | Camillo | $368,000 | 15.5% | 6 |
| 8 | Medina | $340,000 | 11.5% | 6 |
| 9 | Lakelands | $483,000 | 9.8% | 6 |
| 10 | Parmelia | $395,000 | 20.4% | 6 |
Source: REIWA. Houses, minimum 28 sales in year to Sep 2023, land size < 1 HA, as at 19 Oct 2023.
Rent price growth
Declining supply and rising demand are fueling strong rent price growth across Perth.
With a 38.1 per cent increase in its median weekly rent, Seville Grove was the top performer among the southern suburbs. This, coupled with its low median house price, makes it of interest to investors.
Mount Pleasant has seen a number of developments in recent years that add to the allure of the suburb. It placed second, recording annual rent price growth of 34.6 per cent. The suburb is the most expensive on the list for both median house price and median weekly rent at $1.41 million and $875 per week respectively. Interestingly, while rent price growth was high, house price growth was moderate at 3.3 per cent over the same period.
Top 10 suburbs for rent price growth
| SUBURB | ANNUAL MEDIAN HOUSE PRICE (SEP 2023) | ANNUAL HOUSE PRICE GROWTH | SELLING DAYS (Q3 2023) | MEDIAN WEEKLY HOUSE RENT (Q3 2023) | LEASING DAYS (Q3 2023) | ANNUAL RENT GROWTH (HOUSE) | RENTAL YIELD (SEP 2023) | |
| 1 | Seville Grove | $445,000 | 15.0% | 3 | $580 | 13 | 38.1% | 6.8% |
| 2 | Mount Pleasant | $1,410,000 | 3.3% | 18 | $875 | 17 | 34.6% | 3.2% |
| 3 | Belmont | $530,000 | 1.0% | 25 | $600 | 19 | 33.3% | 5.9% |
| 4 | East Victoria Park | $765,500 | 10.6% | 10 | $660 | 14 | 32.0% | 4.5% |
| 5 | Huntingdale | $495,000 | 11.2% | 7 | $580 | 14 | 28.9% | 6.1% |
| 6 | Coolbellup | $580,000 | 3.6% | 8 | $540 | 10 | 28.6% | 4.8% |
| 7 | Bentley | $517,500 | 6.7% | 9 | $540 | 16 | 24.1% | 5.4% |
| 8 | Maddington | $420,000 | 13.5% | 12 | $530 | 10 | 23.3% | 6.6% |
| 9 | Harrisdale | $627,500 | 11.1% | 8 | $675 | 17 | 22.7% | 5.6% |
| 10 | Canning Vale | $700,000 | 6.1% | 11 | $698 | 14 | 22.4% | 5.2% |
Source: REIWA. Houses, minimum 28 sales in year to Sep 2023, land size < 1 HA, as at 19 Oct 2023.
Fastest leasing
Vacancies in the top 10 suburbs were filled in less than two weeks and the top three suburbs all had a median leasing time of 10 days.
Affordability is a key factor driving most of these markets, with the top five fastest leasing suburbs all priced below Perth’s median house rent of $600.
Top 10 fastest leasing suburbs
| SUBURB | ANNUAL MEDIAN HOUSE PRICE (SEP 2023) | ANNUAL HOUSE PRICE GROWTH | SELLING DAYS (Q3 2023) | MEDIAN WEEKLY HOUSE RENT (Q3 2023) | LEASING DAYS (Q3 2023) | ANNUAL RENT GROWTH (HOUSE) | RENTAL YIELD (SEP 2023) | |
| 1 | Maddington | $420,000 | 13.5% | 12 | $530 | 10 | 23.3% | 6.6% |
| 2 | Coolbellup | $580,000 | 3.6% | 8 | $540 | 10 | 28.6% | 4.8% |
| 3 | Erskine | $508,200 | 7.0% | 10 | $520 | 10 | 15.6% | 5.3% |
| 4 | Kewdale | $568,250 | 11.1% | 14 | $520 | 11 | 22.4% | 4.8% |
| 5 | Byford | $495,000 | 8.8% | 7 | $570 | 11 | 14.0% | 6.0% |
| 6 | Success | $615,000 | 6.0% | 9 | $620 | 11 | 12.7% | 5.2% |
| 7 | Willetton | $900,000 | 1.6% | 13 | $650 | 12 | 18.2% | 3.8% |
| 8 | Rivervale | $650,000 | 5.5% | 9 | $590 | 12 | 18.0% | 4.7% |
| 9 | Gosnells | $405,000 | 14.1% | 8 | $500 | 13 | 19.0% | 6.4% |
| 10 | Seville Grove | $445,000 | 15.0% | 3 | $580 | 13 | 38.1% | 6.8% |
Source: REIWA. Houses, minimum 28 sales in year to Sep 2023, land size < 1 HA, as at 19 Oct 2023.
Rental yield
The question that many people ask when looking for an investment property – what is the yield?
All of the suburbs in the top 10 for rental yield fell below Perth’s median house price and had yields over 6 per cent.
Armadale had the highest yield at 6.9 per cent. With a median house price of $349,000, the suburb was also the most affordable on the list and when you factor in its high annual rental growth, it is worth investigating as a place to invest.
Queens Park, while the most expensive suburb on the list, was still priced well below Perth’s median house price, and had a median weekly rent of $600 and yield of 6.4 per cent. The suburb is located closest to the CBD, neighbouring the hubs of Welshpool and Cannington, making it appealing to tenants (and home owners) wanting to live nearer to the city.
Top 10 suburbs by rental yield
| SUBURB | ANNUAL MEDIAN HOUSE PRICE (SEP 2023) | ANNUAL HOUSE PRICE GROWTH | SELLING DAYS (Q3 2023) | MEDIAN WEEKLY HOUSE RENT (Q3 2023) | LEASING DAYS (Q3 2023) | ANNUAL RENT GROWTH (HOUSE) | RENTAL YIELD (SEP 2023) | |
| 1 | Armadale | $349,000 | 16.3% | 5 | $460 | 14 | 21.1% | 6.9% |
| 2 | Seville Grove | $445,000 | 15.0% | 3 | $580 | 13 | 38.1% | 6.8% |
| 3 | Maddington | $420,000 | 13.5% | 12 | $530 | 10 | 23.3% | 6.6% |
| 4 | Parmelia | $395,000 | 20.4% | 6 | $490 | 18 | 14.0% | 6.5% |
| 5 | Gosnells | $405,000 | 14.1% | 8 | $500 | 13 | 19.0% | 6.4% |
| 6 | Mandurah | $365,000 | 10.9% | 12 | $450 | 18 | 8.4% | 6.4% |
| 7 | Queens Park | $490,000 | 6.5% | 9 | $600 | 19 | 17.6% | 6.4% |
| 8 | Greenfields | $410,000 | 14.4% | 5 | $500 | 14 | 11.1% | 6.3% |
| 9 | Kelmscott | $395,000 | 6.8% | 8 | $480 | 13 | 15.7% | 6.3% |
| 10 | Orelia | $400,000 | 18.2% | 6 | $485 | 19 | 24.1% | 6.3% |
Source: REIWA. Houses, minimum 28 sales in year to Sep 2023, land size < 1 HA, as at 19 Oct 2023.
Standout suburbs
There were 11 suburbs that made appearances across multiple lists, making them good opportunities for investors.
Seville Grove appeared on four lists. It was the fastest selling suburb for houses and recorded the largest annual rent growth. It also placed second for rental yields and rounded out the top 10 for fastest leasing suburbs.
Securing a place on three lists were Armadale: first place for rental yields, third for fastest selling, and sixth for house price growth; Maddington: first for fastest leasing, third for rental yield and eighth for rent price growth; and Parmelia: second for fastest leasing, fourth for rental yields and tenth for fastest selling.
Camillo, Coolbellup, Cooloongup, Gosnells, Greenfields, Leda and Orelia placed on two lists.
East v west: new divide
While there is often a focus on north versus south, there were some interesting east-versus-west comparisons in the southern suburbs. We’ve used freeway as the dividing line for the south-eastern and south-western corridors.
The south-eastern corridor performed strongly in the rental market, with more suburbs making the top 10 for rent price growth (eight), fastest leasing (seven) and rental yields (six). By comparison, the south-western corridor leant to the sales market, dominating annual house price growth (eight suburbs) and fastest selling (seven suburbs).
If there is one region to watch over the coming months, it would be the south-eastern corridor. Suburbs such as Seville Grove and Armadale featured high on multiple lists, having shown strong rental growth for the year to September, and recording strong rental yields. Both suburbs were priced well below the Perth median house price and homes sold quickly in these areas, which highlights demand for affordable housing.
At the end of the day, buying a home is a large financial commitment so buyers and investors must make their decisions wisely based on their personal needs.
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