Multi-million dollar mansions are being snapped up at a surprising rate, as Perth’s premium property market stands strong in the face of a national recession.
Real estate agents in the elite western suburbs and coastal stretches say they are seeing an influx of enquiries from expatriates desperate to escape heavily infected COVID-19 cities and return to Western Australia.
The past month has seen several significant sales, including the purchase of Alan Bond’s former mansion in Watkins Road, Dalkeith for $27.5 million – a likely record for 2020 – a property in the renowned Jutland Parade, Dalkeith for more than $10 million and 6 Riverview Place in Mosman Park for $8 million.
It comes as new data compiled by realestate.com.au shows Perth’s blue-ribbon western suburbs have retained the mantle as the city’s most expensive property belt.
Disgraced businessman Alan Bond’s former mansion set a price record. Picture: realestate.com.au
Peppermint Grove took out top spot on the list of 10 most expensive suburbs, with Dalkeith, Cottesloe and Nedlands also pegging spots.
“The top end of the Perth market is doing really well,” said Nerida Conisbee, chief economist at realestate.com.au.
“What is happening across Australia is a really strong shift to premium properties and Western Australia is no exception. We are seeing some decent price growth in premium suburbs.
“What’s different in WA is that there’s a lot of action with new homes as well, which hasn’t happened for a while, and primarily because of the first home buyer stimulus, which has been particularly positive for Perth.”
Ms Conisbee said it was likely these suburbs would continue to go from strength to strength, given the current economic conditions in the west.
Perth has seen a number of expats return in the wake of the coronavirus crisis. Picture: realestate.com.au
“Everything is so uncertain at the moment but if you have a look at what is happening in the WA economy, it’s doing pretty well. It’s moving quite differently to the rest of Australia,” she said.
“People who are losing jobs are typically younger and more exposed to the rental market. You can get home loans under 2% now. There’s a lot going for property, which is quite unusual given we’re in a pandemic and a recession, and in these quite dire circumstances, but the high-end property market does seem to be holding up fairly well.”
Jody Fewster, from Ray White Cottesloe-Mosman Park, said Peppermint Grove had consistently ranked as Perth’s most expensive suburb and was sought-after because it was a small pocket of 500 tightly-held homes.
The Perth market’s top end is still very popular with buyers. Picture: realestate.com.au
She said the recent sale of her childhood home at 89 Watkins Road, Dalkeith for $27.5 million threatened to topple Peppermint Grove from the top spot.
“Peppermint Grove is always under high demand because it has only got 500 homes, so it is tightly-held, highly sought-after.”
Ms Fewster said interest in Perth’s premium properties was surprising given the widespread talk about the negative economic impacts of the COVID-19 pandemic and recession.
“We are seeing a huge amount of interest at the top end of the market. The high net worth buyers are less impacted by the employment situation,” she said.
“Perth is shining in the current dire circumstances. We are seeing a huge number of ex-West Australians looking to return home and purchase.”
The brain drain has reversed as many Aussies who have lived overseas are looking to return home. Picture: realestate.com.au
Ms Fewster said high-end buyers were turning out in high numbers, willing to spend big. In recent weeks she made the sale of her childhood home at 89 Watkins Road, Dalkeith for $27.5 million and 6 Riverview Place, Mosman Park for $8 million.
Scott Swingler, from Space Real Estate – Cottesloe, said COVID-19 appeared to have hastened plans by expatriate West Australians to return home.
“We’ve had people who have grown up in Western Australia and become ex-pats around the world, got good jobs and lived in global cities and may have come back in the next 20 years, but have decided they wanted to come back now,” Mr Swingler said.
“I’m talking to people from Hong Kong, Singapore, Cape Town, Sydney, Melbourne and even Cairns who are looking to return.
“At the moment there’s record low rental stock available and really low stocks of properties for sale.
“I’m running around behind the scenes with 10 buyers with budgets of $4 million or more. All of these people have had good jobs, they’ve lived in global cities. It’s almost like the brain drain left and now the brain drain is coming back with their incomes for top-end housing. It’s a really exciting time.”
In three days last week, Mr Swingler sold two City Beach properties, including 11 Aruma Way and another home in south City Beach for $10 million combined.
Perth’s most expensive suburbs
Want to know where the most expensive neighbourhoods are in the west? Here’s our list:
- Peppermint Grove*
- Dalkeith
- Cottesloe
- Nedlands
- City Beach
- Applecross
- Swanbourne
- Mosman Park
- Floreat
- Claremont
Source: realestate.com.au
*Despite just nine sales in the past 12 months, Peppermint Grove remains in the top spot with the disclaimer that this tightly-held suburb has a smaller sample size in which to obtain a median sales price.
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