Buyer’s agent predicts Perth’s next million-dollar suburbs as property market soars

Perth’s property market is experiencing a remarkable upswing, with CoreLogic reporting a 21.1% annual increase in median property values over the year to April. As a result, a number of suburbs are poised to join the exclusive million-dollar club, according to Peter Gavalas from Resolve Property Solutions.

The impressive growth is underpinned by a potent combination of soaring demand and limited supply, with Perth’s population growing 3.6% during the 2022-23 financial year, according to the Australian Bureau of Statistics. The tight rental market, with a citywide vacancy rate of just 0.6% in April as reported by SQM Research, further compounds the situation.

“Cracking the $1 million median price barrier is a big deal, that shows a suburb has become highly sought after and upscale. We’re seeing this happen in more areas as the market continues to grow,” Gavalas said. He noted that before the pandemic, million-dollar suburbs were rare, but thanks to the extraordinary price growth in recent years, the number of million-dollar suburbs has sharply increased.

According to the Real Estate Institute of Western Australia (REIWA), the number of suburbs in the million-dollar club grew 14.5% in 2023, totaling 63 suburbs. Looking ahead, Gavalas predicts several more suburbs are on the brink of surpassing this threshold, citing factors such as proximity to the city, river or beach, adjacency to more affluent suburbs, good schools, and strong infrastructure.

Gavalas also highlighted the economic dynamics supporting these suburbs’ growth, with high median incomes underpinning the borrowing capacity needed to sustain higher property values.

Based on these criteria and REIWA data, Gavalas has identified eight suburbs likely to join the million-dollar club soon: Connolly, Padbury, Mindarie, Victoria Park, Riverton, Leeming, Beaconsfield, and Bedford. These suburbs are showing all the right signs, from escalating sales figures tipping over the million-dollar mark to a steady increase in demand, supported by a mix of lifestyle offerings, strategic location, and community infrastructure.

“Savvy investors and homebuyers are already recognising the potential for significant returns,” Gavalas said, noting that these suburbs are prime candidates for future growth.