Perth’s hotspot suburbs among those poised to join $1 million club

Perth’s million dollar property club is set to welcome a host of new members in 2024.

Twenty suburbs with a median home price in the $900,000s are poised to surpass the million dollar mark in a city where the overall median dwelling value stands at $809,870.

The list released by REIWA on Wednesday (12 February) encompasses an even split between north and south of the Swan River, and a similar spread between outer and inner suburbs.

CathHart, CEO, REIWA, said the list was based on the overall expectation for Perth property prices to increase five to 10 per cent this year, and these suburbs’ individual growth trends.

Ms Hart said price growth was affected by a number of factors.

“An overall growth environment, as we’re experiencing now, will see prices increase in general,” she said.

“A more specific factor is the demand to live in a particular area; the greater the demand, the greater the upward pressure is on prices.

“Demand can be driven by a suburb’s proximity to schools, lifestyle hubs, the city, coast and river, while an improvement in local amenity can boost demand.”

There was an explosion of new million dollar suburbs in 2024 but this year may see more modest growth in the club’s membership.

Five million dollar Perth hotspots

The diversity of suburbs on the list highlighted the individual traits of each area that would likely fuel capital growth in 2025.

From semi-rural Jarrahdale to Joondanna’s inner suburban unit-heavy profile, the variety of suburbs created contrasting points of interest to different buyers and investors.

Julie Kelley, Global Sales and Marketing Manager for aussieproperty.com, identified five suburbs on the list that stood out as presenting value to different buyer demographics.

Lathlain, second on the list and needing only nominal annual price growth to reach the $1 million mark, was not necessarily the best investment prospect for the average buyer.

“Lathlain, just south of the city and with established but ageing homes, is attracting developers drawn to the old blocks with the scope to knock down and build multiple dwellings.

“It’s a viable investment for developers and those with the know-how to profitably subdivide and build at a time when construction can very easily run over time and budget.

“It’s not necessarily the best place in Perth for the average buyer who is hoping to attract strong capital growth in the near-term.”

North suburban Connolly and Woodvale, sitting first and sixth on the list, were an entirely different proposition, according to Ms Kelley.

“The prospects for Woodvale are amazing.

“It has a great school catchment, is well connected to the freeway for city access and is a 12-minute drive from Burns Beach.

“Woodvale is generating continued strong demand from families and this will only be embellished by the ongoing development of new sports facilities in the area,” Ms Kelley said.

Connolly, where prices have risen almost $200,000 in two years, was expected to continue its stellar price growth due to continued infrastructure improvements and popularity with families.

Closer to the city, Joondanna, (13th) still has growth potential, Ms Kelley said, and was popular with the DINK (double income, no kids) demographic but buyers should be focused on purchasing homes with a sizeable plot of land, due to the already high supply of apartments and townhouses.

Willagee, in the heart of the southern suburbs east of Fremantle, was undergoing a major transformation that would see its median price likely take off from below $915,000 to more than $1 million.

“Willagee is hugely popular with older families, namely those with teenage children and solid employment credentials.

“The suburb is gentrifying,  with older homes making way for contemporary and luxury builds as part of a massive redevelopment unfolding there,” Ms Kelley said.

Bridesmaid suburbs delivering capital growth

REIWA’s Ms Hart said price growth in Perth was affected by a number of factors.

Ms Hart said prices can increase as a flow-on effect from price growth in neighbouring, or so-called bridesmaid, suburbs.

“As a popular area becomes less affordable, buyers turn their attention to adjacent suburbs,” she said.

“Many of the suburbs on track to join the million dollar club in 2025 are located next to existing members of the club,” she said.

“For example, Iluka joined the million dollar club in 2023, and neighbouring Connolly is one of the suburbs on track to see its median house sale price reach the $1 million threshold this year.

“South of the river, Winthrop and Murdoch are fairly new entrants to the million dollar club, and nearby North Lake and Kardinya are now approaching the million-dollar mark.”

There does, however, remain downward pressure on property price in Perth that will very likely see 2025 deliver more modest growth than last year’s 17.1 per cent (or $118,000) boom.

New listings are now at their highest since 2022, while homes are also taking longer to sell now than last year.

Perth is now recording a slower rate of growth than Brisbane and Adelaide over the rolling quarter, according to CoreLogic data.

In the June quarter of 2024, growth in Perth home values was 7.1 per cent, easing back to just 1.0 per cent growth in the three months to January.

Rental yields in Perth are still above all other capitals except Darwin and Hobart, at 4.2 per cent. Rents for the past 12 months are up 7.4 per cent for houses and 8.8 per cent for units.