The 10 best suburbs in Perth for first home buyers
Find out which suburbs in Perth made the top 10 list in Canstar’s Bright Starters Australian First Home Buyer Report powered by Hotspotting.
There are plenty of great locations in Perth where you can buy a home for less than $440,000. This was the cut-off price we used to come up with our ‘Bright Starter’ suburbs in Western Australia’s capital. (For more on why we chose this see our full report.)
Of course, price isn’t the only consideration for first home buyers. A good lifestyle and prospects for growth should also be on the checklist. In Canstar’s inaugural Bright Starters Australian First Home Buyer Report we used five key metrics – sales volumes, price growth, vacancy rates, infrastructure and proximity to work and amenities – to identify suburbs that are desirable and likely to grow in value over time. Check out our list below.
The 10 best suburbs in Perth for first home buyers
- Armadale
- Butler
- Gosnells
- Kelmscott
- Medina
- Midland
- Parmelia
- Port Kennedy
- Rockingham
- Westminster
Armadale
First home buyer incentives are giving the Perth market momentum, a key factor for the young families who dominate Armadale’s landscape. Armadale is the fourth-fastest-growing LGA in Western Australia and has some of the cheapest houses. Located on Perth’s south-east transport corridor, it has good access to large employment nodes. It is marked for future infrastructure development.
Butler
The City of Wanneroo in Perth’s north is WA’s fastest growing LGA. It’s a place of new suburbs with modern houses in the $300,000s and $400,000s. As Wanneroo expands, the train line is extended and now suburbs such as Butler have services linking to central Perth. Butler is situated between the Indian Ocean and Neerabup National Park. Butler shopping centre sits beside the train station and there are multiple schools.
Gosnells
The City of Gosnells and the suburb of the same name are attracting buyers seeking affordability and amenities. The suburb recorded more than 350 house sales in the past year, most in the $300,000s. The high demand from buyers and tenants means vacancies are 0.5% or lower in all local postcodes. Transport options include the Albany and Tonkin highways, plus the train station and bus transit. A bonus is the green spine along the Canning River.
Kelmscott
The City of Armadale is attracting first home buyers for its affordability, connectivity and amenities. Kelmscott is a high-volume market because it has houses in the $300,000s and lots of features – a commuter train station, major shopping centre, several schools, lots of parks and sports fields and a hospital. It adjoins the Darling Range Regional Park. It’s on the Albany Highway, close to the juncture with the Tonkin Highway.
Medina
Being near a big industrial zone with oil refineries and factories may sound unappealing but the suburbs of the City of Kwinana have a green space buffer zone. Suburbs such as Medina have multiple employment zones nearby but also lots of parkland. This is some of the cheapest real estate in Perth, with houses in the $200,000s and $300,000s. Demand is high and vacancies low, so prices are rising fast. Kwinana Town Centre provides ample amenities.
Midland
This is a major hub in the City of Swan in Perth’s east. The residential areas of Midland are surrounded by infrastructure including shopping centres, schools and colleges, TAFE, sports complexes, a transport interchange around Midland train station, a major hospital, community services and significant businesses. These provide both amenities and jobs, near the intersection of the Roe and Great Eastern highways. Houses are typically in the $300,000s.
Parmelia
Parmelia and its neighbours are considered downmarket but they provide plenty of amenities at some of the cheapest prices in the Greater Perth Area. Parmelia is a suburb of cul-de-sacs beside the Kwinana Town Centre, with major shopping facilities, and close to an education precinct with schools and a TAFE campus. Big industrial employment zones are nearby, on the other side of the green buffer, and there are train links to central Perth.
Port Kennedy
This suburb in Perth’s south epitomises the dominant real estate trend, the ‘Exodus to Affordable Lifestyle’. It abuts the Indian Ocean and is almost fully enclosed by major green spaces, including Rockingham Lakes Regional Park, Port Kennedy Scientific Park, a golf course and Port Kennedy Foreshore Park. It has schools, shopping centres, a resort and other facilities providing amenities and jobs. Houses are in the $300,000s and $400,000s.
Rockingham
Few bayside suburbs in capital cities can offer houses in the $300,000s and $400,000s. The rare exceptions include the suburbs of the City of Rockingham in the south of Perth. Here people can access the ‘Exodus to Affordable Lifestyle’ trend without even leaving the city. The suburb of Rockingham is the LGA’s central hub, has train links north and south, and is close to one of Perth’s biggest employment zones.
Westminster
The City of Stirling is a middle-ring Perth precinct with million-dollar suburbs and others with medians in $700,000s and $800,000s. Westminster is one of the few with a median house price below $400,000. It also sits beside a central services hub which includes shopping centres and community services, which provide both amenities and employment. It abuts the Reid Highway and a TAFE campus in a precinct with multiple school options.
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The best suburbs in Perth for first home buyers
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Suburb | Median price | 1-year growth | Median rent | 10% Deposit | |||
---|---|---|---|---|---|---|---|
Initial outlay* | Time to save^ | Monthly repayment+ | |||||
Single income | Dual income | ||||||
Armadale | $275,000 | 31% | $320 | $27,913 | 2 yrs & 6 mths | 1 yr & 3 mths | $1,109 |
Butler | $390,000 | 7% | $390 | $39,433 | 3 yrs & 7 mths | 1 yr & 9 mths | $1,579 |
Gosnells | $325,000 | 14% | $340 | $32,933 | 3 yrs | 1 yr & 6 mths | $1,310 |
Kelmscott | $350,000 | 10% | $340 | $35,433 | 3 yrs & 2 mths | 1 yr & 7 mths | $1,417 |
Medina | $275,000 | 28% | $340 | $27,913 | 2 yrs & 6 mths | 1 yr & 3 mths | $1,109 |
Midland | $310,000 | 7% | $350 | $31,433 | 2 yrs & 10 mths | 1 yr & 5 mths | $1,250 |
Parmelia | $295,000 | 23% | $350 | $29,913 | 2 yrs & 8 mths | 1 yr & 4 mths | $1,189 |
Port Kennedy | $395,000 | 12% | $400 | $39,933 | 3 yrs & 8 mths | 1 yr & 10 mths | $1,599 |
Rockingham | $420,000 | 10% | $380 | $42,453 | 3 yrs & 10 mths | 1 yr & 11 mths | $1,700 |
Westminster | $380,000 | 16% | $350 | $38,433 | 3 yrs & 6 mths | 1 yr & 9 mths | $1,538 |
Sources: Median price, growth and median rent: CoreLogic as at 1 February 2022. Initial outlay, time to save and repayment data: canstar.com.au as at March 2022. *Initial outlay includes the deposit, stamp duty, transfer fee and mortgage registration fee. ^Time to save calculations are based on the time required to save up the initial outlay costs with the average income (ABS Personal Income by greater capital city statistical area, adjusted by ABS Wage Price Index, June 2021). Calculations assume that 20% of after-tax income is saved each month, earning a savings rate of 0.62% (average bonus savings rate over the past 12 months to 1/03/22). 2021/22 tax rates plus the 2% Medicare Levy are applied to the annual income and savings interest, and inflation of 2.5%pa is applied to income and property price. Dual income calculations assume there are two savers with the average income. Actual time to save will vary depending on your individual circumstances as well as the rate of property growth. +Repayment calculations assume principal and interest repayments over a 30-year loan term with an interest rate of 3.36% (average owner-occupier variable rate over the 12 months to 1 March 2022). LMI for an owner-occupier first home buyer (per Genworth LMI Premium Calculator) is included in the loan amount for the 10% deposit monthly repayment calculations. For initial outlay, time to save and repayment data based on a 20% deposit download the full Bright Starters report.
Cover image source: Ric Jacyno/Shutterstock.com
About Terry Ryder
Terry is the founder and Managing Director of hotspotting.com.au, which he created in 2006 to help investors find the best places to buy. Terry has been a specialist researcher and writer on Australian residential property in a career spanning four decades. During that time he has published four books.
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