For those considering a leap into the Perth property market for the first time, the experts agree it's a great time for first homebuyers. But where will they get the best bang for their buck?
Up to $500,000 is the price range typically associated with first homebuyer activity in Perth. For many, this means a house-and-land package in one of the family-friendly new housing estates. For those who don't want to set up camp in an outer suburb, apartments provide an affordable way for people to live close to the city centre or in older suburbs that have undergone infill redevelopments.
Top of the list for affordability
Domain Group data shows that the Kwinana region is a very affordable spot for first-home buyers. For the year to September, Medina topped the list for the cheapest Perth suburb, with a median house price of $242,500, ahead of Armadale, Midvale, Camillo and Greenfields.
Orelia has the lowest median price for units, ahead of Greenfields, Armadale, Dudley Park and Glendalough.
"Anybody in Greater Melbourne or Greater Sydney looking at a price point like this will be rather envious," Domain Group chief data scientist Nicola Powell said.
According to Real Estate Institute of WA president Hayden Groves, the top spots for first homebuyers at the moment include Nollamara, Morley, Bentley, Rockingham, Highgate and Joondalup.
"Nollamara is within 10 kilometres of the city, close to transport links, and an established suburb," he said. "The median house price is $400,000 which is below the threshold for stamp duty concessions, so you don't have to pay any stamp duty as a first homebuyer.
"Highgate and Maylands have good quality and affordable apartments. West Leederville is particularly popular among young people. In the apartment market, it's in the top five of median price growers in the last 12 months - it has grown by about 14 per cent.
"You can still get into an apartment in Mount Lawley, where the median price is $450,000. What is being built is sympathetic to the heritage and integrity of the area, so you are not seeing high-rise developments but medium to high-density, three to four-storey apartment buildings that are still affordable and of high quality.
Head north of the CBD
Nollamara also features in the top suburbs list for Now Living Realty's David Gillon, as well as Belmont, Brabham and Clarkson.
"There aren't too many capital cities left in Australia where you can live within 8 kilometres of the main CBD and have plenty of choice under $300,000," Mr Gillon said. "When you consider how close Belmont is to the Burswood Entertainment precinct and the new stadium, along with other bonuses such as distance to the airport and numerous employment zones, Belmont represents a great long-term investment.
Mr Gillon said that with the train line and freeway extension now reaching Clarkson, it was well placed to benefit from the growth of the northern coastal corridor.
"With Joondalup being so close and earmarked as a future CBD, there is plenty of employment opportunities," he said. "Proximity to the coast and attractions such as Mindarie Marina and the future Ocean Reef Marina will provide plenty of lifestyle options."
"Housing options in the area start from the mid-$200,000 range for apartments and low- to mid-$300,000 range for four-bedroom, two-bathroom homes on 600 square metres."
Suburbs to watch
RE/MAX WA managing director Geoff Baldwin's top picks in the northern suburbs are Clarkson, Merriwa and Craigie.
Mr Baldwin believes Craigie in particular is a suburb to watch. "Craigie is only 20 minutes by car from the CBD and walking distance to the beach," he said. "It's close to the giant Whitfords shopping centre and with prices at an average $450,000, that's well down on what they were two to three years ago when they were well above $500,000."
Peard Real Estate chief executive Peter Peard likes the look of suburbs such as Baldivis, Craigie, Scarborough and Nollamara as well as out in the Swan Valley and new subdivisions towards Midland.
"This is based on the affordability of them now compared to what they were and the potential for them to go back up," he said.
Mr Peard said there were also affordable options in Mount Lawley for apartment-style living as well as Claremont, near Bay View Terrace.
"You can get a 1x1 [one bedroom] 200 metres from the train station for $420,000. It's a great growth suburb and a good area."
Experts agree that the Perth property market is at the bottom of its cycle, so the only place for prices to go is up.
According to Dr Powell, the affordability aspect had contributed to WA having the highest first homebuyer participation rate in the nation, with that group comprising 21.8 per cent of owner-occupier buyers in 2016-17.
"A first homebuyer wants to hit the market when prices are at their lowest but also when interest rates are low as well," she said. "There is pressure on first homebuyers who have been sitting on the fence, perhaps trying to save a little more, to make that commitment now."
