Domain House Price Report: Perth house prices rising by $448 a day as top price growth suburbs revealed

Perth house prices have risen by an astonishing $448 per day over the last 12 months — the steepest dollar value increase in the city’s history. According to the Domain House Price Report, released on Thursday, the WA capital was once again the nation’s top performer with a 23.8 per cent jump in its stratified median house price, marking its strongest annual growth rate in 17 years. The unit market also eclipsed all other capital cities with 25.5 per cent growth, with both house and unit prices now at record highs of $852,240 and $466,720 respectively. “The figures really showcase the change that we’ve seen in pricing and Perth continues to wear the crown of Australia’s best housing market in terms of performance,” Domain Research and Economics chief Dr Nicola Powell said. “I think what’s really interesting is Perth is really bucking the national trend now because what we have seen is deceleration of price growth across many other cities, but the pace of price growth in Perth is about one and a half times higher than the previous quarter.” Armadale recorded the city’s sharpest annual rise in price growth, with house values increasing an extraordinary 38.5 per cent to reach $450,000. Kallaroo, Camillo, Kelmscott and Seville Grove rounded out the top five performing suburbs for the year, each recording growth of about 35 per cent or more. “Perth has been the market that has been the surprise — what we’ve got is conditions that are reminiscent of the mining boom and even in some of those regional WA markets, it is like mining boom times,” Ms Powell said. “But we’ve got to remember that Perth is meant to be one of Australia’s more affordable capital cities and when you see pace of price growth over a quarter of 6.6 per cent, that is unsustainable in the longer term and the only winners from that type of price growth is people who are already in the housing market and are reaping the benefits. “What this does is actually cuts out a whole cohort of new buyers and first-time buyers that just cannot break in. “That stretch to affordability will eventually slow down the pace of price growth because budgets just won’t be able to meet and stretch as far as where prices have continued to rise.” Remarkably, the report has highlighted a list of Perth suburbs where affordability has actually improved amid widespread record-breaking price growth. Applecross’s unit market topped the list for most improved affordability with a 14.7 per cent annual decline in its median price. House prices in North Coogee also took a dive of 13.3%. Affordability has also improved from this time last year in West Leederville, Burswood and White Gum Valley, with house prices falling by between 6.4 and 10.9 per cent. Perth’s top price growth suburbs Armadale 38.5% Kallaroo 38.2% Camillo 38% Kelmscott 35.1% Seville Grove 34.9% Ravenswood 33.7% Parmelia 33.6% Orelia 32.7% Cooloongup 32.2% Tuart Hill (units) 31.3% Source: Domain