A suburb in Perth's south has recorded the highest jump in property values across the country, with one resident selling his home for more than double what he paid for it five years ago.
Key points:
- Property values in Armadale increased by 25 per cent in 2023
- Tom Kelly sold his Camillo home for more than double what he initially paid
- High rent returns in the area are attracting east coast investors
Tom Kelly purchased the modest three-bedroom Camillo property, located in the City of Armadale, for $210,000 in 2018. The same home recently sold for $510,000.
CoreLogic data released this week showed Armadale area property values surged by 25 per cent in 2023, the biggest annual increase in Australia.
The results mark a significant turnaround from the 4.9 per cent drop in national property values recorded over 2022.
Home values in the fellow southern Perth area of Gosnells leapt by 22 per cent, with the Serpentine-Jarrahdale, Kalamunda and Canning areas listed in the top 10 for price growth across the country.
There were also strong gains in Bunbury, Busselton, Esperance and parts of Western Australia's Wheatbelt.
The CoreLogic report showed properties in capital cities have increased in value significantly more than those in regional areas across the country.
Dwelling values in capital cities were up an average of 9.3 per cent in 2023 — more than double the 4.4 per cent combined average rise recorded in regional areas.
Prices soar as east coast offers rush in
Mr Kelly said the price hike on his home came as a surprise.
"I've always thought I'd probably get $350,000 … but I wasn't expecting it to go through the roof like this now," he said.
"Down the road a small place, a three-by-one, went for $460,000.
"The area hasn't really been recognised as an area to buy … we've seemed to always never be the big sellers."
Professionals Armadale real estate agent Grant Wilson said the Camillo property received more than 40 offers and sold just days after it was listed.
He said about 30 per cent of offers came from prospective first-home buyers, while the other 70 per cent were from east coast investors seeking to cash in on high rent returns.
"Most properties that we're putting on at the moment are getting between 15 and 20 offers," he said.
"With the pressure from the east coast, prices have just ballooned well over expectations.
"This is probably the most frenetic market that I've seen in my 20 years [in the industry]."
Mr Wilson said there was little chance of home values stabilising until more stock entered the market.
"If we could pick up and build 5,000 homes tomorrow and put them on the market, that would slow the market," he said.
"Over the Perth area we've got about 750 houses on the market, and last time I checked the migration is about 2,000 a month."
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