10 Perth suburbs set to take off in 2016

The Perth property market is tipped to go backwards during 2016 as price are expected to dip during the year.

While Melbourne is tipped to outperform Sydney over the next 12 months, Perth and Darwin are expected to experience overall price falls of 1-7 per cent due to their exposure to Australia’s resources downturn.

But this has given the opportunity for postcodes one regarded as being among Perth’s most unfavourable, to come into the spotlight.

Alongside blue chip real estate in Claremont, and hipster haven Leederville, price growth is predicted to soar in Armadale, Rockingham, Warnbro and Bayswater.

Also read: 10 Sydney suburbs set to take off in 2016

According to Domain Group senior economist Andrew Wilson, prices in Perth’s top 10 hottest suburbs will grow up to 4 per cent, double the prediction for the Perth market as a whole.

Wilson also forecasts Perth’s sliding house prices will reach bottom next year and begin to rise a modest 2 per cent in the later half of 2016. 

“The worst is over for the Perth market and it will end 2016 in the black,” he said.

The shakeout in the Perth economy after the resource boom had been significant but the expected price corrections to end as buying and selling decisions returned to normal.

“Confidence will have recovered because people realise it’s not the end of the world and life goes on,” Wilson said.

Also read: 10 Brisbane suburbs set to take off in 2016

“The Perth housing market can look to Adelaide as an example that confidence is a short-term problem.”

Acton director Paul Owen said the suburbs became popular with buyers priced out of Mount Lawley.

“People looked around and said, ‘Mount Lawley is expensive and Maylands is so close and cheap’,” he said. 

“There’s not much you can find six kilometres from the city that’s comparable.”

The strength of Perth’s first home buyer market – the strongest in the country – was another factor.

Suburbs such as Armadale, Rockingham and Warnbro were regarded as value picks for first home buyers.

O’Neil agent Andrew Byl, who has worked in Armadale for decades, said buyers were beginning to shrug off the suburb’s once negative reputation and recognise the value in an area surrounded by hills and well served by public transport.

“When people get to know the area, when they have friends and family in the suburb, they say, ‘hey, this is quite a good spot’,” Byl said.

Claremont was forecast to lead the comeback of Perth’s prestige market, receiving a boost from a better sharemarket outlook for 2016.

Also read: Five suburbs to watch across Australia in 2016

Perth’s top 10 suburbs for 2016

Claremont

Leederville

Maylands

Bayswater

Armadale

Wembley

Como

Rockingham

Warnbro

Butler