The 10 best affordable suburbs in Perth 2024

We are now seeing the first signs of moderation in the three-year Perth property boom, as sales activity starts to taper off from the recent highs. The market-share of suburbs with positive rankings dropped notably in the second half of 2023; and, for the first time in three years, suburbs with negative classifications are almost as many as the positive ones. Perth was the national leader on price growth in 2023, according to CoreLogic figures published on 2 January 2024. Its median house price rose 15.6%, compared to the national average of 8.6%, and its median unit price increased 12.4%, well ahead of the national average of 6.4%.

While the Perth market remains vibrant, it’s no longer a national leader in sales momentum. Prices will likely rise again in 2024, but the West Australian (WA) capital probably won’t be the national leader this year. Perth still scores highly on three of our metrics, but is relatively weak on two others, and our overall ranking for Perth is fourth, although close behind the top three (Brisbane, Adelaide and Sydney). There continue to be good growth options for people buying in Perth (refer Top 10 Rising Stars below) but buyers will need to be more selective with their choice of location in 2024.

Of course, price isn’t the only consideration when selecting a location to buy property. Lifestyle benefits and prospects for growth should also be on the checklist. In Canstar’s Rising Stars: Best Affordable Suburbs Report 2024 we used five key metrics – sales volumes, price growth, vacancy rates, infrastructure and proximity to work and amenities – to identify the affordable suburbs that are desirable and likely to grow in value over time. Check out our list below.

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The 10 best affordable suburbs in Perth

• Balcatta
• Banksia Grove
• Belmont
• Bentley
• Golden Bay
• Gosnells
• Harrisdale
• Midland
• Greenwood
• Wellard

Balcatta:

The City of Stirling is consistently among the best performers among the Perth property markets, and the suburb of Balcatta provides a worthy case study. This middle ring suburb north of the Perth CBD has commercial and retail sectors as well as residential, access to the Mitchell Freeway, multiple parks and reserves, and several schools. Homes typically sell in two weeks, with 275 sales in the past year and prices rising 10%.

Banksia Grove:

The City of Wanneroo in Perth’s far north has featured among the nation’s leading population growth areas. Banksia Grove recorded 240 house sales in the past year, with the median price lifting 11% to $495,000. Houses typically sell in less than a fortnight. Rents are high, with vacancies just 0.3%. This suburb has a backdrop of major green spaces and there are numerous schools and shopping centres.

Belmont:

A median house price of $545,000 represents good value, considering Belmont’s proximity to both the Perth CBD and the Perth Airport. Belmont also has frontage to the Swan River and access to extensive green spaces. Over 200 homes have sold in the past 12 months, usually within three weeks. The vacancy rate is among the lowest in a tight Perth rental market.

Bentley:

The Canning LGA offers a series of affordable and well-located suburbs in the inner south of Perth. The suburb of Bentley attracts demand for the nearby education precinct. Houses sell within three weeks, and the median house price rose 10% in the past 12 months to reach $535,000. Vacancies at 0.3% indicate strong rental demand also.

Golden Bay:

The City of Rockingham has been a leader in Perth’s recent boom, offering bayside suburbs at affordable prices. This means suburbs like Golden Bay have the best long-term capital growth rates in Greater Perth. Golden Bay has averaged over 10% per year, helped by 14% uplift in the past year; but its median house price remains below $500,000. Demand remains high, with homes typically selling in under 10 days.

Gosnells:

Home-buyers and investors seeking affordable homes generally look south in Perth, with the City of Gosnells a prime location. The suburb of Gosnells remains popular, with buyer demand rising. Homes sell generally in 10 days, and the median house price rose 16% in 12 months. Gosnells has train and motorway links,multiple schools, shopping centres and lots of green space areas.

Harrisdale:

Another precinct heavily sought after is the City of Armadale in Perth’s far south. Harrisdale is popular for its access to large green spaces and its good basic infrastructure and amenities; which  includes the Tonkin Highway link to central Perth. House prices have grown 10% in the past year, with 200 house sales and an average time on market at just 10 days. The vacancy rate is 0.6%.

Midland:

The City of Swan in the north-east is one of Perth’s growth areas, and Midland is a key hub. It has a train station, commercial and retail precincts, schools, TAFE campus and extensive sports amenities. Midland remains one of Perth’s most affordable suburbs, with a median price still in the $300,000s. There were close to 400 house and unit sales in the past 12 months and the vacancy rate is just 0.3%.

Greenwood:

This middle-ring suburb in Perth’s north is surrounded by extensive green spaces and has multiple shopping and school options, plus train and Mitchell Freeway links to central Perth. It’s also just a few kilometres to the beach. Average time on market for Greenwood houses is just 10 days and there is strong rental demand, with vacancies 0.3%.

Wellard:

The Kwinana LGA has been heavily sought after by buyers for its affordability, good basic amenities and proximity to major employment opportunities. Around 350 homes have sold in Wellard in the past 12 months, and the median house price has lifted 15% to $490,000. It has train links, the Kwinana Freeway and massive green space areas.

The best affordable suburbs in Perth

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Source: www.canstar.com.au. Prepared on 22/01/2024. Based on a selection of suburbs’ median prices, growth and rent figures provided by Hotspotting by Ryder. Initial outlay figures include the deposit, stamp duty, mortgage registration and transfer fees; and lenders’ mortgage insurance (LMI) premium for the 10% deposit scenarios. Stamp duty calculated based on an owner occupier purchase of an established dwelling. LMI premium based on Helia LMI Premium Calculator for an owner occupier borrower and a loan term of 30 years. Monthly repayments calculated based on the average variable interest rates of 6.5% (20% deposit) and 6.8% (10% deposit) and a loan term of 30 years. Interest rates based on the average owner occupier, principal and interest variable rate for a loan of $600,000 over the past year, rounded to the nearest 0.1%. Percentage of income based on the average total income by Greater Capital City Statistical Area (ABS Personal Income, 2020-21), adjusted by the ABS Wage Price Index (Sep-2023) for each state.

Cover image source: Victor Yong/Shutterstock.com