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Best Suburbs to Invest in Perth in 2022

West Australians are waiting with bated breath to see how the state’s border reopening will impact the property market.

Property analysts are predicting further growth for Perth real estate with low interest rates, tight stock levels, robust competition and boom-like conditions driving prices up.

The Real Estate Institute of Western Australia says Perth is on track to achieve 10% growth this year. But where are the best suburbs to invest in 2022?

CoreLogic’s latest Hedonic Home Value Index, released on March 1, shows the median house price in Perth – $559,837 – is the lowest of every Australian capital city, making it the most affordable city to buy a new home.

Perth has experienced a 13.1% increase in home values in 2021. But the rate of growth has not reached the lofty heights on the east coast where Brisbane, Sydney, Hobart, Adelaide and Canberra recorded rises between 22.4% and 29.7%.

REIWA President Damian Collins said suburbs with promise were often those that had recorded relatively low price growth, but where sales volumes had increased by more than 50% or more.

“It is often the suburbs that have high sales volumes and lagging prices that offer the best growth potential. They tend to have more ground to make up, especially if the suburb is in high demand with buyers,” Mr Collins said.

So, here’s our Perth investment guide and eight suburbs you may want to watch this year.

Willagee

Located 15km south of the Perth, Willagee is a favoured residential enclave with a population of 4872.

REIWA data shows the suburb sustained 23.3% growth in the past year, with the median price now at $647,500.

About 40% of the suburb is rentals. Houses lease for around $480 a week with a rental yield of 3.8% and units fetching around $400 a week with a yield of 7.1%, according to realestate.com.au.

Satterley’s estate, Gallery at Willagee, is a small neighbourhood with appeal for young couples, downsizers and families. It joins Carawatha Park and has an immersive art trail through the public walkways, all on the doorstep of great schools, public transport, Murdoch University and shopping at Westfield Booragoon.

Seville Grove

Seville Grove in Perth’s south-eastern suburbs is being eyed as an affordable choice for property investors, first homebuyers and families.

Not only has Seville Grove seen 6.8% price growth in the past year, but REIWA has forecast further growth due to an 89% increase in sales volumes for the suburb in 2021. The median price in Seville Grove is now $355,000.

In addition, there are decent rental returns to be had. Data from realestate.com.au shows houses are leased for $400 a week with an annual rent yield of 5.8% and units fetch around $335 a week with a rental yield of 6.7%.

Alkimos/Jindalee/Eglinton

New suburbs in Perth’s northern urban fringe are being considered a boon for buyers seeking some seaside solitude and potential price growth this year.

Alkimos, named after the shipwreck of the Greek freighter that ran aground on the coast nearby in 1963 and still sits 400m offshore, has been forecast as one of Perth’s biggest contenders for price growth this year after recording a 78% increase in sales volumes in 2021.

In the past year, Alkimos has seen a 6.2% increase in property values and now has a median price of $430,000.

On the rental front, houses generally rent for $420 a week with an annual rental yield of 5.2%, while units lease for around $370 a week with a rental yield of 5.3%, according to realestate.com.au.

Nearby Satterley estates, Eden Beach at Jindalee and Allara at Eglinton are also worthy of consideration.

Satterley's Eden Beach estate in Jindalee

REIWA data shows Eglinton has shown 9% growth in the past year and has a median property price of $435,000, while Jindalee has had price growth of 13.6% with the median price sitting at $625,000.

Eden Beach is set on the beautiful coastline, has a sensational foreshore playground as well as The Beach House beach bar and there is a proposed primary school planned for the area.

Allara, just 20 minutes’ drive to Joondalup, has been recognised by the Urban Development Institute of Australia (UDIA) as an environmentally sustainable development. It is also home to the incredible Kinkuna Park which lays claim to having Australia’s first musical barbecue, which works in conjunction with a unique children’s water wonderland.

Allara Estate's popular Kinkuna Park

Madeley

REIWA has earmarked Madeley as one of a handful of Perth suburbs with the potential to flourish when it comes to price growth this year after recording a 75% increase in sales volumes in 2021.

Previously part of Landsdale, Madeley is 20km north of the CBD and was largely run by market gardeners until the 1990s before extensive property development started in 2001.

The suburb has seen 6% price growth in the past year and now has a median property value of $615,000.

For property investors, Madeley could be a lucrative prospect with houses renting for $500 a week with an annual rental yield of 4.4%, while units generally rent for around $450 a week with a rental yield of 5.9%, realestate.com.au data shows.

The established nearby suburbs of Kingsley, Woodvale and Marangaroo indicate continued price increases are likely for Madeley, with the older suburbs sustaining growth of between 15.9% and almost 17.9% in the past year.

Forrestfield

Eyes are trained on Forrestfield, in Kalamunda’s foothills, as a serious property option in 2022 after significant price growth in the past year.

REIWA data shows Forrestfield has seen 16.3% growth in the past 12 months and its median price now sits at $465,000.

The rental market is also promising with houses in Forrestfield leased for $400 a week with an annual rental yield of 4.5%, while units rent for $320 a week with a rental yield of 5.2%, according to realestate.com.au.

Satterley’s The Hales estate in Forrestfield has seen heightened interest from buyers.

Designed to retain the natural features of the site including native marri and jarrah trees and the nearby Crumpet Creek, the estate is less than 5km from Perth Airport and is close to plenty of schooling options and public transport, including the new High Wycombe train station, which is due for completion in 2022.

There is also a nature-based playground with a range of features largely derived from naturally sourced materials. The centrepiece is a 9m tall timber tower with a huge 14m tunnel slide, as well as an all-abilities double flying fox at ground level.

The Hales estate in Forrestfield

Wellard

A spike in sales volumes in Wellard by 80% in 2021 has put the southern suburb at the forefront of expectations of solid property price growth this year.

Wellard has been named by REIWA in its Top 10 Perth suburbs for probably price growth in 2022. In the past 12 months, the suburb has experienced 4% growth and now has a median price of $415,000.

On the rental front, houses lease for around $420 a week with an annual rental return of 5.3%, while units rent for about $350 a week with a rental yield of 6.9%.

Originally rural, the suburb has been developed and now includes a range of residential properties including traditional home sites and urban-like apartments.

Wellard also has a range of amenities including Peter Carnley Anglican Community School, Wellard Primary School, with another public primary school and middle school planned. It is also on the Perth-Mandurah rail line, making it a cinch to be in Perth in 30 minutes or Mandurah in 20 minutes.

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