Article

Where are Perth’s Prestige Markets?

As the market stabilises, follow the stock not the median.

March 20, 2023

By Michael Veletta

The image shows an aerial view of a harbour in Perth.

The ‘prestige’ Perth Residential Market, is usually referring to the western suburbs, however we’ve seen it expand to the inner south along the Swan River towards Fremantle.

The median house price is often the leading market indicator in Residential real estate. The median house price is derived from large data samples being the median sale price of various residences within a particular suburb. This data can be reliable within suburbs having a high number of transactions and a low standard deviation in house prices. 

It is important to note that this data can often include sales that are not market transactions and may not necessarily meet the definition of Market Value being 'Willing Buyer Willing Seller' though are still recorded in sales databases such as RP Data and Landgate. For example, these sales could include family transfers whereby the sale price is well below market levels, dragging the median house price lower.

Peppermint Grove, Perth's most expensive suburb, often has large fluctuations in its median house price due to the small sample size with only 1,600 residents and a high standard deviation, with sales often ranging between $2,000,000 to $15,000,000. The change in its median house price usually does not reflect its true market performance. The median house price can easily be skewed either way depending on if the majority of sales are below or above its median house price
An example of the median house price for the past 12 months based on the prestige western suburbs market is as follows based on current REIWA stats;

  • Peppermint Grove -23.8%
  • Mosman Park 3.2%
  • Claremont -2.2%
  • City Beach 16.8%
  • Cottesloe 9.5%
  • Dalkeith 10.9%
  • Nedlands -6.9%

All of the above suburbs are prime and considered to be amongst the premier suburbs in Perth. After a substantial growth period throughout 2021, we have noticed the market has generally stabilised throughout 2022 and the first quarter of 2023. We consider growth rates of 0-10% applicable for most freestanding dwellings within these suburbs over the past 12-18 months.  

The above median prices indicates an extensive range in performance for suburbs that are adjacent to one another. As an example, properties in Nedlands (-6.9%) are not 18% worse off over the past 12 months compared to the adjoining suburb of Dalkeith (10.9%). Similarly, Cottesloe (9.5%) has yet to outperform the adjacent suburb of Peppermint Grove (-23.8%) by 33% over the past 12 months.

In the prestige markets, one of the most reliable indicators of market performance is to follow a particular stock or property which transacts at various times throughout various markets.

It is important to ensure the property has yet to undergo significant renovations, re-zoning etc., so we are comparing like with like.

Some examples are as follows. 

11 Bay Road Claremont

  • An older-style 1960’s residence on a 460m2 allotment
  • Sold in July 2021 for $1,250,000
  • Under contract December 2022 for $1,250,000
  • Change 0% over 17 months.


31 Martin Avenue Nedlands


  • A renovated 1930s residence on a 1,012m2 allotment. Zoned R60 with the development potential
  • Sold in July 2021 for $2,360,000
  • Under contract December 2022 for $2,450,000
  • Change 4% over 17 months.


16 Perth Street, Cottesloe


  • A renovated 1920s residence on a 281m2 allotment. 
  • Sold in June 2021 for $1,400,000
  • Sold December 2022 for $1,571,000
  • Change 11% over 18 months


12 Bay View Terrace Peppermint Grove


  • A vacant 926 sqm allotment overlooking Peppermint Grove Tennis Club with distant Swan River views.
  • Sold in April 2021 for $4,250,000
  • Sold July 2022 for $4,440,000
  • Change 4% over 14 months.


The above sales show a range in growth rates between 0-11%, significantly contrasting the -23.8% to 16.8% using the median sale price for prime western suburbs. 

It is also important to note that different property types perform at different levels within the same suburb. For instance, vacant land and older-style homes where a builder is required are receiving less demand than fully completed, renovated or modern homes. This is due to buyers being prepared to pay a premium for a fully completed residence to avoid building in the current market.

Our valuers have reported stable to steady market conditions over the past 12 months after solid growth throughout 2021. Very low stock levels, a low unemployment rate and an increasing population appear to be counteracting the rising interest rates at this point in the market cycle as we enter 2023.

At CBRE, we have prestige valuers in the premier suburbs analysing sales and market influencers daily to ensure the most reliable data. 

Our Valuers that cover these prestige markets daily to provide you with the most up-to-date and relevant advice are:

Cameron Kane
Premium Valuer for this region with a wealth of experience over many years.

Brett Howes
Covers City beach and along coast north wards through to our wonderful prestige beaches. 

Matt Stephen
Covers Inner South through the Riverside.