The strength of the upper end of the Perth housing market is highlighted by the fact that there are now 22 suburbs which have a median house price of $1.0 million or over according to Shaun Yeo, Director of Jones Ballard Property Group.

Mr Yeo said that REWIA figures for the December 2007 quarter showed that the vast majority of the million dollar suburbs in Perth were located either beside the river or the ocean.

“Lifestyle continues to drive the upper end of the Perth housing market and it is now surprise that virtually all million dollar suburbs in Perth are located beside the river or the coast.

“The strength of the upper end of the local housing market is underlined by the fact that over one third of homes that Jones Ballard is now selling are priced above $1.0 million.

“Riverside suburbs now account for 11 of the million dollar Perth suburbs. The growing demand for riverside suburbs by property buyers is underlined by the fact that the latest REIWA figures for the year ending December 2007 quarter show that the median house price in South Perth surged by 25.0%. This is during a period when the overall median Perth house price rose by just 1.1%.

“As a resulting of rising property prices in riverside suburbs, it is now very difficult to find even a home unit in million dollar suburbs such as South Perth priced for under $300,000. $ Million Dollar Perth Suburbs River Coastal City Centre Applecross $1.52 million Churchlands $1.32million Menora $1.00 million Attadale $1.16 million City Beach $1.80 million Subiaco $1.28 million Dalkeith $2.65 million Cottesloe $1.75 million Shenton Park $982,500 East Perth $1.36 million Floreat $1.15 million Mt Pleasant $1.02 million Mt Claremont $1.28 million Nedlands $1.51 million North Fremantle $1.04 million Peppermint Grove $3.15 million Trigg $1.10 million Salter Point $1.12 million Mosman Park $1.31 million South Perth $1.20 million Watermans Bay $983,000 Claremont $1.36 million * Source REIWA

“Jones Ballard is finding that rising interest rates has had little impact on property prices in riverside suburbs.

“Generally, the property buyers in these suburbs are in very well paid employment or personally own businesses. These types of property buyers are benefiting the most from the booming state economy and therefore their incomes are rising much faster than any additional costs associated with rising interest rates.

“Jones Ballard believes that there are a number of riverside suburbs where property is currently undervalued and have the potential to become million dollar suburbs during the coming two years. These suburbs include Como (median house price $800,000) and Bicton (median house price $810,000),” he said.