The north-west coastal suburb of Alkimos is Perth’s best prospect for capital growth for property investors in 2016, according to research group Onthehouse.com.au.
The property sector research firm reported a 15.15 per cent median price increase in Alkimos over 2015, making it the metropolitan area’s best performing suburb.
Onthehouse.com.au market analyst Eliza Owen said Alkimos’s median price growth beat the next best-performing suburb, San Remo near Mandurah, by more than 5 per cent.
“Activity in Alkimos could reflect affordability in the suburb, but judging by the development happening in this area it is becoming a popular place to buy,” Ms Owen said.
“An IGA supermarket is being set up in Alkimos and when a major chain store is established in a suburb, it is often an indicator of an up and coming area.”
Rounding out the top five best-performing suburbs from 2015 were Perth, Wandi and South Fremantle, at 9.1 per cent, 9.05 per cent and 8.99 per cent median price growth, respectively.
In all of the top five best-performing suburbs, it was houses rather than units or apartments where the price growth was experienced.
On the other side of the ledger, Perth’s worst-performing property class in 2015 were units in North Coogee, which experienced a median price reduction of 12.6 per cent.
Houses in Kewdale were down 10.2 per cent, Attadale by 9.9 per cent, while units in Perth experienced a 9.72 per cent fall in value.
However, Ms Owen said there was nothing particularly bad about any of the suburbs on the worst-performing list.
“The Perth suburbs that retracted in value in 2015 is a reflection of the greater Perth market as a whole, which saw annual growth of 0.7 per cent in houses and -3.96 per cent in units during this period,” she said.
“As the Perth economy comes out of an enormous boom, these dwellings are seeing a correction in value.”
Ms Owen said those economic conditions in WA meant any capital price growth in the metropolitan area was not likely to be sustainable.
“Generally, most suburbs in Perth should decline due to the fall in resource commodities,” she said.
“This could either be cyclical or people buying up dwellings in desirable places as more stock comes onto the market.”
