Recent REIWA figures obtained by West Real Estate reveal Inglewood to be the cheapest of Perth’s 10 most affordable inner-city suburbs.
The figures, based on suburban median house price for the 12 months ending in February this year, put the suburb’s median at $831,000 – followed closely by Leederville in second place with $864,000.
REIWA President Damian Collins said while these suburbs were significantly more expensive than Perth’s overall median house price of $495,000, their value compared to their inner-city peers came down to a number of factors.
“Inglewood and Leederville have the lowest median house prices on this list, which can be attributed to Inglewood being further away from the CBD and the properties in Leederville generally being smaller, older and suited to single couples rather than families, which can drive out this wider pool of buyers,” he said.
“It’s not necessarily that these suburbs are ‘less favourable’, but they are being compared to the other suburbs on this list which are widely known as affluent suburbs to live and raise a family in.”
Red Fox Property Group Director and Licensee Natalie Hoye lives in Inglewood and has a wealth of experience selling properties in the area.
“Inglewood has, in the past, had a less glamorous reputation than its more expensive neighbours and received less interest and investment along Beaufort Street, which is arguably the suburb’s social lifeline,” she said.
“The blocks in the avenues west of Beaufort Street, which tend to average 720sqm and are subdividable, are much more generous than those found in Leederville, North Perth, Subiaco and Mount Hawthorn, so represent great value.”
North Perth saw the highest number of sales in the 12-month period to February, with 125 sales, and was third on the list for lowest median house price.
“There could be many reasons for the number of sales in North Perth,” Mr Collins said. “North Perth is quite a large suburb with lots of properties, so it already has higher buyer activity than the smaller suburbs.
“On top of its idyllic location, local real estate agents have noticed a lot of old character homes in North Perth have been preserved on the outside and renovated on the inside, which is appealing to a lot of buyers.”
Realmark Coastal Sales Associate Paul DiLanzo regularly sells properties in North Perth and said the suburb was popular for its mix of property styles.
“North Perth has shown great value for money compared to surrounding suburbs recently, and the change in school zones has seen more buyers target the area,” he said. “The block sizes are fairly well sized for inner city, so families are attracted to the lifestyle on offer.
“You have a swathe of higher-end character homes at the top of the market and then a mix of units and townhouses that sell more often at the bottom end.”
Mr DiLanzo said Mount Hawthorn was a suburb investors should keep an eye on.
“It’s no surprise Mount Hawthorn is on the move quickly, but the level of upper-end sales has certainly surprised a lot of people,” he said. “It’s the talk of the town at the moment.”
Mr DiLanzo said inner-city suburbs were a good investment for those who could afford it.
“I think buying in an inner-city area for many is not cheap, but it’s one of the best long-term investments you can make if you can get in,” he said. “Even during the long downturn those markets suffered very small losses compared to lots of the market.”
Mr Collins agreed, but urged caution.
“Due to the higher median house prices seen in these suburbs, you would most likely see couples who are working professionals and have a combined income, or single working professionals who have a higher income and consider the investment potential in their purchase,” he said.
“Traditionally, properties close to the CBD have higher growth rates than outlying suburbs. So yes, land in most of these areas has a high chance of increasing in value. However, there are a lot of varying factors that can change this, such as supply and demand, access to amenities and economic trends.”
Ms Hoye said she expected to see a rise in the sale of units now that the rental moratorium had come to an end.
“We’re doing more appraisals for landlords looking to divest investment properties that they’d been hanging onto waiting for the market to start recovering,” she said.
“Many local homeowners are too scared to sell for fear of not being able to find something else to buy or a rental to move into.”