'More attractive than ever': House prices in Perth's waterfront suburbs reach record highs
Isolation, exclusivity and those multi-coloured sunsets that sensuously melt into the Indian Ocean have long drawn rafts of prestige buyers to Western Australia’s tightly held shores.
But following a long and arduous state lockdown that ended mere weeks ago, the nation’s most far-flung capital city could soon see fresh waves of interstate prestige home hunters all craving a slice of affordable waterfront paradise.
It’s a wave that comes hot on the heels of a pandemic-fuelled house price surge that saw medians across the capital’s most prized pockets, such as Dalkeith and City Beach, rise by up to 27 per cent in just 12 months over the past year.
Led by quarantine-weary buyers seeking sun, sand and solace with a million-dollar water view, prices in City Beach leapt to a record-breaking $2.25 million, with houses in waterfront suburb Cottesloe climbing a colossal 24.7 per cent to $2.25 million.
In Dalkeith, a 25.4 per cent rise shot the house median to $3.01 million – cementing the pristine patch as Perth’s first $3 million-median suburb.
“The waterfront market is very tightly held because of our typography – there simply aren’t that many homes that have access to river or ocean views so it’s the scarcity value,” says Ray White Cottesloe and Mosman Park director Jody Fewster.
“But we’ve also seen a huge number of people looking to move there and our local population have been upsizing [to these prestige neighbourhoods] because the thought of having a home with an outlook is more attractive than ever.
“So we have finally seen prices on the rise in the WA market but what’s interesting is, relative to the east coast, we’re affordable so we’ve seen a real increase in luxury homes changing hands … and increased interstate interest.
“And one of the benefits of being one of the world’s most isolated cities is we’ve been relatively trouble-free [throughout COVID-19].”
While Fewster believes reopened borders could release much-needed interstate buyer demand, the laid-back capital has chalked up its fair share of exorbitant property transactions over the years.
The famed former mega-mansion of iron ore heiress Angela Bennett – in Saunders Street, Mosman Park – secured an eye-watering $57.5 million back in 2009, which was then an Australian record.
Nearby, at 89 Watkins Road, Dalkeith, Fewster collected an incredible $27.5 million for high-profile businessman Alan Bond’s palace in August 2020.
Back in Mosman Park, she is selling yet another waterfront mansion, this time at 134 Glyde Street, and expects the five-bedroom estate to fetch a street record-smashing figure.
Priced from $12.5 million, the tri-level home has been the residence of famed ophthalmologist Ian Constable and his wife Liz Constable, a former member of parliament for the Western Australian electoral district of Churchlands.
The home sits on a rare 2004-square-metre parcel and boasts stunning water views.
“Properties like this don’t come up often … Ian and Liz have owned it for more than 25 years,” Fewster says.
Edison McGrath agent Christopher Dee believes the scarcity of prime waterfront homes will always underpin Perth’s prestige market, with sheer bang for buck set to generate further growth.
“I think in terms of Perth, in particular, we are showing the best value in real estate [throughout the country]. We’re the most affordable and we have the bluest sky ahead of us in terms of growth – especially with the borders opening,” Dee says.
“We’ve had consistent inquiry from the eastern states and that has largely equated to waiting until the borders open.
“So I just think that riverfront and oceanfront market, for the next 12 to 18 months, has a lot more growth to come.
“There’s pent-up demand and Perth has been dragging along for the last 14 years … we’ve only just in the last 18 months enjoyed a spike of growth that’s taken a very long time to come and I just don’t see it backing off.
“And, as for waterfront, we’ve probably got the nicest beaches with this amazing white sand … and then there are the sunsets.”
The impending prestige buyer wave has already sparked strong inquiry on a luxury three-bedroom penthouse at 802/39 Mends Street in South Perth, for which Dee is inviting offers over $6.985 million.
He says the home’s elevation, sweeping views and clever orientation had sent a flurry of buyers through its doors, with more expected to come.
“This penthouse faces north which means it gets the winter sun … so it’s the perfect orientation for the climate,” Dee says.
“Homes at this level of quality don’t come up very often. It’s got four and a half metre ceilings and an absolutely awesome living area that feeds onto the balcony.”
Over at 12 Marine Parade, Cottesloe, Cheryl Stewart of Central Estate Agents is enjoying similar waves of interest for a striking four-bedroom abode with exquisite ocean views.
“Obviously oceanfront properties are in high demand and because there are very few they are very tightly held,” Stewart says.
“I think what makes our waterfront special is probably the pristine beaches and the fact that we don’t have a lot of high-rises along them.
“And obviously, there are those views of the Indian Ocean.”
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