Recently conducted industry research shows that during the past financial year there were 127 Perth suburbs which had individual properties selling for above $1.0 million, according to Jones Ballard Property Group Principal, Nik Jones.

During the past four years the number of Perth suburbs with properties selling for above $1.0 million has quadrupled.

According to Mr. Jones, there continues to be a high level of demand for quality properties in the Perth real estate market because of strong wage growth rates amongst executives and self employed business people.

“This is reflected in the strong capital growth of homes in desirable locations such as properties located close to the river, city and ocean. Many of these properties are now selling for over $1.0 million.

“In well located suburbs, a growing number of properties are now achieving selling prices of several million dollars. In South Perth, the highest price paid for a property during the last financial year was $9.0 million while in Dalkeith the highest sale price was at $13.8 million.

“There are also a growing number of Perth suburbs where the median house price is now above $1.0 million. South Perth and Salter Point are the latest two suburbs where the median value has risen above $1.0 million during the past year.

“New homes finished to a very high standard are in very strong demand because of the rising cost of building a new home and delays in construction times.

“Overall, the number of million dollar home sales is increasing because of the booming State economy. Only a few years ago, million dollar home sales in Perth were considered a rarity. For example, during 2003, there were only 25 suburbs which had homes which sold in excess of $1 million.

“Jones Ballard is now finding that properties in these riverside suburbs are now selling much faster than homes located in outer suburban areas and as a result there fewer properties available for sale which is putting a upward pressure on prices.

“For example, while the median house price in Salter Point jumped by over 40% during the past year, the median price in the outer suburb of Canning Vale rose by only 22.8%.”

“The good news for local property owners in well located areas close to the city, river and beach is that there property values are also likely to rise strongly during the coming year because of the ‘ripple’ effect.”

“Generally, where there is s significant price increase in specific suburbs, property values in surrounding areas also tend to rise because property buyers begin to view these areas as undervalued.”

“Suburbs such as Waterford and Karawara, for example, are primed for strong capital growth, as the median prices in these well located suburbs increased by significantly less than neighbouring suburbs during the past year,” he said.