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CELEBRATING TEN YEARS OF MOMENTUM WEALTH

Momentum Wealth is fortunate enough to be celebrating 10 years of business in 2016 and we’re taking this opportunity to look back on the Perth property market to see how it’s changed. 

North or south of the river – which area is best?

It’s one of the great debates that divides the city of Perth – which area is better, North or South of the river? Our research team collected a variety of data and sets the housing market and unit market toe to toe to see if we can finally call a winner.

NORTH FEATURES

Perth City
Northbridge
Joondalup Regional Centre
Midland Regional Centre
Beaches & beach bars
AQWA
Hillarys Boat Harbour
Swan Valley
Leederville/Claremont Activity Strips
Shopping centres (Whitford City, Karrinyup, Morley etc)

SOUTH FEATURES

Fremantle Regional Centre
Mandurah Regional Centre
Victoria Park Activity Strip
3 of the top 4 public schools
Coogee Marina
Adventure World
Eagles & Docker’s new training grounds
Shopping Centres (Garden City, Carousel etc)

HOUSES

CATEGORY

NORTH

SOUTH

WINNER

MEDIAN PRICE TO JUNE 2016

$620,261.66

$533,800.32

north

$86,461.33 higher

ANNUAL MEDIAN CHANGE PERCENTAGE

-4.16%

-3.47%

south

0.69% less downward trend

AVERAGE ANNUAL MEDIAN PERCENTAGE CHANGE OVER 5 YEARS

1.57%

2.17%

south

0.6% higher increase

AVERAGE ANNUAL MEDIAN PERCENTAGE CHANGE OVER 10 YEARS

3.77%

4.20%

south

0.44% higher increase

RENT

$433.88

$390.60

north

$43.28 higher rent

YIELD

3.64%

3.81%

south

0.17% higher yield

HOUSES SCORE CHECK

2

NORTH WINS

Higher median price to June 2016

Higher rent

4

SOUTH WINS

Less annual downward change in price

Higher average annual growth change over 5 years

Higher average annual growth change over 10 years

Higher yield

UNITS

CATEGORY

NORTH

SOUTH

WINNER

MEDIAN PRICE TO JUNE 2016

$456,304.68

$450,097.93

north

$6,206.75 higher

ANNUAL MEDIAN CHANGE PERCENTAGE

-2.83%

-2.41%

south

0.41% less downward trend

AVERAGE ANNUAL MEDIAN PERCENTAGE CHANGE OVER 5 YEARS

0.94%

1.00%

south

0.06% higher growth

AVERAGE ANNUAL MEDIAN PERCENTAGE CHANGE OVER 10 YEARS

4.00%

3.78%

north

0.22% higher growth

YIELD

4.29%

4.10%

north

0.19% higher yield

RENT

$376.77

$355.05

north

$21.73 higher rent

UNITS SCORE CHECK

4

NORTH WINS

Higher median price to June 2016

Higher average annual growth change over 10 years

Higher rent

Higher yield

2

SOUTH WINS

Less annual downward change in price

Higher average annual growth change over 5 years

FINAL RESULTS

north

6

south

6

Interestingly, the housing markets north and south of the river both have their own strengths and weaknesses, making it difficult to determine an overall “winner”.  The north has a more expensive property market than the south, mainly due to the inclusion of the Western Suburbs. The north also has a stronger unit market, with a greater median price, median rent and a stronger 10 year growth rate coupled with a higher yield. However the housing market is performing stronger in the south, with greater annual, 5 year and 10 year growth as well as a stronger yield.

Historically north of the river suburbs are considered more vibrant and with greater amenity, where as the southern suburbs are perceived as more family orientated with less crime and greater schooling and park lands. The south is also generally much younger (with the exception of Fremantle and Victoria Park) and so features less early settlement and character homes, although it generally has a greater portion of houses compared to units, as 62% of Perth’s units are in the northern suburbs. This is most likely a result of higher zoning in the north creating greater development opportunities and also accounts for the northern suburb’s stronger performance in units over the past 10 years.

Momentum Wealth is backed by 10 years of research driven investment strategy, tailored to our client’s property needs. If you would like to learn more about how we can help you on your property journey, you can request a consultation or subscribe to our newsletter.