Wanneroo suburbs make national top 100 list

2406
Butler is one of four Wanneroo suburbs on a national top 100 list of supercharged suburbs where quarterly sales have been rising strongly. Picture: Anita McInnes

THE City of Wanneroo has four suburbs – Butler, Alexander Heights, Marangaroo and Merriwa – included in a national top 100 list of supercharged suburbs, according to Hotspotting director Terry Ryder.

Mr Ryder said the latest Hotspotting price predictor index proved there remained many property growth markets around the nation, which contradicted the general negative sentiment over recent months.

“Our analysis of locations across the nation reveals numerous growth clusters that are resisting the downward trend described by some commentators,” he said.

“Perth is the nation’s most vibrant market at present where about three-quarters of suburbs are rising or consistency locations, led by the affordable end of the market, plus, Wanneroo and Armadale feature among our national top 10 municipalities.”

The City of Wanneroo was a major contender for the title of national growth star.

“Of the 23 (City of Wanneroo) suburbs included in our analysis, 18 are classified as rising markets and another two are rated as consistency markets.

“Four of the Wanneroo suburbs are included on our national top 100 list of supercharged suburbs, including Butler (median price $405,000) where quarterly sales over the past three years have been rising strongly.

“The top 100 list also features Alexander Heights ($480,000), Marangaroo ($465,000) and Merriwa ($395,000) – all places that offer attractive affordability.”

But the national growth star was Townsville, Queensland where sales activity had risen throughout 2022 and 23 of the 26 suburbs were included in their analysis were classified as rising markets.

Mr Ryder said no other municipality in Australia could match that performance – although Wanneroo in WA came close.

“Townsville’s property market is underpinned by a wonderfully diverse local economy, a rising population, an enviable lifestyle and attractive affordability.

Prices continue to rise here, vacancies are below one per cent, and rental yields are also high.”

The suburbs and towns which made the national top 100 list of supercharged suburbs – such as Butler, Alexander Heights, Marangaroo and Merriwa – were all places with patterns of rising sales activity over three or more consecutive quarters.

“More than 40 per cent of the locations on our new Top 100 list are suburbs in Adelaide and Perth, which are two capital cities that continue to defy the downturn pressures seen in the biggest cities.’’

Other City of Wanneroo suburbs named as rising markets included Alkimos, Banksia Grove, Carramar, Clarkson, Girrawheen, Jindalee, Quinns Rocks, Landsdale, Madeley, Pearsall, Ridgewood, Tapping, Yanchep and Woodvale (which is located in the cities of Wanneroo and Joondalup).

Two Rocks and Hocking were rated as consistency markets while Wanneroo, Mindarie and Darch were given a plateau rating.

Earlier this month REIWA included Butler among the suburbs in Perth recording a fast time to sell a house in November.

The median time to sell a house was 15 days during November with reiwa.com data showing Butler (eight days) making the top 10

Back in September homes in Tapping (six days), Clarkson (seven days) and Butler (seven days) were among the top 10 fastest to sell in Perth.

Meanwhile, the International Monetary Fund (IMF) is warning that misalignment in housing prices, combined with the expected rise in interest rates as central banks normalize monetary policy, suggests a significant risk of a correction in housing prices.

In its December Housing market stability and affordability in Asia-Pacific report the IMF said compared with the Organisation for Economic Co-operation and Development (OECD) average, housing-related expenditures formed a higher share of total spending in Australia, Japan and New Zealand suggesting some affordability challenges in these countries.

“Further, spending a large share of disposable income on housing-related expenditures is often considered to be a sign of unaffordable housing,’’ the report said.

“In both Australia and Japan, the housing cost overburden rate, that is the share of the population spending more than 40 percent of its income on housing, is higher than the OECD average.

“A significant concern going forward is that higher interest rates will make homeownership unaffordable for the average household due to rising mortgage payments.’’