A SURVEY of Perth home prices during the last financial year by the Real Estate Institute of Australia shows that the inner city suburbs achieved the highest growth figures in the Perth metropolitan area and even outperformed inner city Sydney and Melbourne for flat and unit price increases.
The REIA figures show that during the 1999-2000 year, the median price of flats and units in the Perth central area increased by 13.7 per cent compared to 6.9 per cent for the entire metropolitan area for flats and units.
It also compared favourably with Sydney and Melbourne inner city housing which rose 9.3 per cent and 11 per cent respectively.
According to Acton Central Consolidated director Mark Anderson, the figures confirm the general trend that the closer your property is located to the city centre, the greater the level of capital appreciation.
“This trend has been accelerated in recent years by a growing demand among home buyers to live close to cafes and restaurants,” Mr Anderson said.
“The growing popularity of Subiaco among home buyers is a good example of this trend because it is not only located close to the city centre but also has a wide range of cafes, restaurants and theatres.”
Mr Anderson believes this growing development of inner city housing is being driven by a major social change.
“The quiet home in a large suburban block has dominated the way people in Perth have lived for nearly one century, yet in the coming years we will experience a greater development in a ‘Champs Elysees’ style living with homes located closer to busy inner city roads,” he said.
“This change in housing developments has in a large part been driven by lifestyle changes. Many more people want to devote less time to household chores and this includes maintaining large blocks.
“These lifestyle changes has driven the move to more inner city living and homes located on smaller blocks.
“As a result of this major change in lifestyle, the demand for inner city real estate has been increasing at a very high rate and as a result property values have also been rising strongly.”
