Boom or bust: The Perth suburbs agents will and won’t buy in
Western Australia might be riding high on headlines about price growth and investor demand, but leading buyer’s agent Lloyd Edge said not every suburb was a smart buy in 2025.
Edge has identified five Perth suburbs he’s steering clear of this year, based on risks ranging from oversupply and poor capital growth, to infrastructure stagnation and lack of long-term buyer demand.
Not every suburb is a smart buy in Perth says this buyer’s agent. Credit: Moment RF
Banskia Grove ($670,000 median house price)
Once touted as an up-and-coming family suburb, Banksia Grove is now showing signs of oversupply and flat growth according to Edge.
“It’s far from key employment centres and heavily reliant on house-and-land packages, which can limit capital gains over time,” he said.
East Perth
Despite being inner-city, East Perth’s unit market is saturated and struggling to deliver capital growth. CoreLogic’s Pain and Gain report revealed in the Perth local government area, which includes the suburbs of East Perth, West Perth and the CBD itself, more than 18 per cent of sales lost money.
“It’s got lifestyle appeal, but investors are often chasing rental yields in a market that’s been flat for years,” he said.
Wellard ($667,000 median house price)
While affordable, Wellard has had long-standing concerns around rental volatility and inconsistent buyer demand according to Edge.
“Don’t confuse affordability with investment-grade,” Edge warned.
Armadale ($560,000 median house price)
Often cited for its low price point, Armadale struggles with low socio-economic indicators and underinvestment in infrastructure. But despite that, east coast investors raided the suburb over the past few years even buying up unlivable homes.
“Capital growth here has been sluggish and demand remains patchy,” he said.
Kwinana ($576,000)
Kwinana and its surrounding suburbs have been flagged for high investor activity but low long-term appeal.
“It’s an area that often looks appealing on paper because of low entry costs, but lacks the infrastructure and employment hubs needed to sustain real growth,” Edge said.
So where should you be looking for your next property? Edge recommended buyers look at gentrifying middle-ring suburbs with rising owner-occupier appeal and locations with infrastructure investment, like new rail links or hospitals.
He said Perth would continue to perform, but with significant variation between suburbs.
“Don’t buy into hype,” he said.
“Look for growth drivers, not just rising prices.”
Greenwood ($870,000 median house price)
Edge said Greenwood has experienced steady demand from owner-occupiers due to its proximity to the city and coastal areas.
“While Greenwood is more developed compared to emerging suburbs, ongoing renovations and community initiatives contribute to its continued appeal,” he said.
“However, it may not exhibit the same level of rapid gentrification seen in other areas undergoing significant redevelopment.”
Hilbert ($667,000 median house price)
Hilbert has seen increased residential development lately, transitioning into a more suburban landscape according to Edge.
He said the suburb offered affordable housing options, attracting first-home buyers and investors.
“However, as of the latest available data, Hilbert is still in the early stages of development, with infrastructure and amenities continuing to evolve,” he said.
“Investors should be mindful of the suburb’s growth trajectory and the time it may take for gentrification to fully materialise.”
Victoria Park ($999,000 median house price)
Victoria Park is undergoing significant gentrification with a mix of new apartment developments and the revitalisation of its existing housing stock.
Edge said the growing appeal of its proximity to the city and the development of the East Victoria Park precinct, with improved amenities and cafés, was attracting more owner-occupiers.
“With ongoing investment in local infrastructure, it’s becoming a hotspot for those looking for convenience without the high price tag of the city,” he said.
Property Powerhouse chief executive Garth Davis said the bloodbath on the Australian stock market and a barrage of tariffs announced by US President Trump would see investor money flow towards the safety of bricks and mortar.
“NAB is now suggesting the RBA will ease interest rates another three times this year in May, July and August by 25 basis points at each meeting,” he said.
“This would see the cash rate drop to 3.35 per cent in just four months’ time.
“Moreover, ANZ’s economics team would not rule out a 50 basis point cut in May, if sentiment sours and the global growth outlook deteriorates sufficiently”.
Davis said as demand increased for property in Perth, prices would rise due to ongoing limited supply.
However, Home Loan Experts senior mortgage broker Jonathan Preston believed Perth was already “overextended” and might be approaching or above fair value.
He said expected rate cuts by the RBA were unlikely to have as big an impact as in Melbourne and Sydney.
“In Perth rate cuts will help momentum, but right now, the city is growing more slowly than most of the rest of Australia,” he said.