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Why the property stars are shining on Southern Perth

Perth is rightly being seen as the nation’s best city property market with prices continuing to strengthen after posting positive growth over the past year when most other cities experienced reduced price points.

There is no question that from its recovery status in 2020, Perth’s property market is showing strong signs in 2023.

Plus, some government incentives for first home buyers are adding further momentum to the city’s property market and are helping young families. 


The region has some of the most budget-priced houses of any capital city, as well as offering good infrastructure, services, and amenities. 


Suburbs south of the CBD also have the added advantage of being strategically located in Perth’s south-east transport corridor, which makes numerous large-scale employment nodes easily accessible.

Further growth and opportunities are expected in the future, with the area marked for infrastructure development by the Federal Government, encouraging additional business, industrial, and residential projects. 


The revival is supported by some of the lowest vacancy rates – currently well below one per cent – in Perth’s metropolitan area.

Population and economic growth 

In the year 2021-2022, the Southern Perth combined population increased by a whopping 4.27 per cent, which is three times the state average (1.47 per cent) and more than twice the Australian average (1.7 per cent).

Plus, the area continues to grow rapidly, with an estimated population of 233,000 now, and thrives around community services and light industry. 


Industries driving the local economy include healthcare, education, and training, construction, retail trade, manufacturing, fabrication, processing, warehousing, and bulk goods handling activities. 


Perth was also one of only three capital cities in the nation to experience continual dwelling price growth in 2022, according to a CoreLogic Home Value Index report.  


In a trend being experienced in other major markets across the nation, many of Perth’s stand-out municipalities are at the affordable end of the market, including Southern Perth.

This includes the Cities of Gosnells and Armadale, which have three key strengths – affordability, strong yields, and excellent transport links. 

A major employment hub within striking distance of Armadale is the Western Trade Coast (WTC) – a gateway to global industry and trade with the economies of China and South East Asia.

WTC is made up of various government departments together with Fremantle Ports, the Kwinana Industries Council, City of Cockburn, Town of Kwinana, industry representatives, and LandCorp.

Business activities within the WTC region area are a major contributor to the economy. The region employs 11,000 people and generates $15 billion per annum. When fully developed, WTC is expected to employ 22,000 people and contribute $28 billion to the local economy.

Property market metrics

The Perth property market has been strong for the past three years, remaining undaunted through the worse of the pandemic and the period of interest rate increases.

In the second half of 2022, the suburbs of Armadale and Harrisdale were two of the most popular areas in Western Australia for first home buyers, according to NAB data, which said value and location remained the two most important factors for first-time buyers.

South-east Perth’s popularity with this cohort is growing due to its access to transport infrastructure, schools, affordable and sustainable housing, and the natural environment.

First home buyers in this area remained undaunted by cost-of-living pressures and general market downturns, with their activity remaining steady, helped by government support schemes.
 

Canstar’s 2023 Rising Stars Australian Property Market Report also placed the suburb of Armadale on its list of best Perth places to invest in 2023.

The suburb experienced a 13 per cent uplift in its median house price over the 12 months to October last year but was still very affordable with a median house price of $300,000. 


It is the second year in a row the Armadale LGA has been singled out in this report, with its infrastructure and amenities, as well as its affordability, attracting first home buyers and investors. 


In 2022, three of the 10 suburbs with the lowest median house prices in the Greater Perth area were in the Armadale LGA. 


The suburb of Armadale topped the list while Camillo, which had been labelled a “family-friendly suburb” by REIWA, was third, followed by Brookdale. 


Investors can find rental yields above six per cent in several suburbs across Southern Perth with the high yields supported by extremely low vacancy rates. 


The Perth vacancy rate hit 0.4 per cent in February 2023, the lowest among the capital cities – having dropped steadily for six years from 5.5 per cent in June 2017. 

Word on the street

Armadale is a great historic suburb with lots to offer. The shopping centres have just about everything you need.

There are always improvements being made. The new Aquatic Centre is amazing, you have the Champion Lakes regatta, 26 primary schools, 12 secondary schools and three libraries in the City of Armadale.

There are so many lovely older homes with many fruit trees, new builds in newer development areas just five minutes from the city centre.

The region has cheap and affordable living and has experienced a Gloom to Boom story.

Meaning the foundations for becoming great suburb include having gorgeous hills, parklands, reserves and dams, wineries, and lakes for champions, which are present in the region and underpin its current evolution into a mighty fine suburb indeed.

All of these attributes are helping to transform this Southern Perth suburb in particular from its dark yester-years to a bona fide future property diamond.

Southern Perth Highlights 

  • Affordable housing 
  • Strong population growth 
  • Large industrial areas (jobs nodes) 
  • Strategic Metropolitan Activity Centre 
  • $4 billion container port 
  • $1 billion hydrogen plant 
  • $635 million rail line and station 
  • $237 million upgrade to Armadale Rd 
  • $4.3 billion ship-building project

About our area reports 

During our area research and selection process we assess 10 key aspects of the area to determine whether it meets our strict criteria.  We refer to this list of qualifying criteria as our ‘Area Top 10’ and includes: 

Area overview

Infrastructure

Industry

Economics

Population and demographics

Assessing the surroundings

Supply and demand – sales | rental | land

Sales and Rental Statistics

Recent properties sold/rented

The word on the street

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