Which sought-after Perth suburbs have seen the steepest price drops?

House prices in some of Perth’s most expensive suburbs have recorded sharp falls, with drops of more than $200,000 in some premium pockets over the past year.

Subiaco, North Coogee, Woodlands and Bicton recorded some of the largest median price falls last year, Domain’s House Price Report for the December quarter shows.

After a rapid rise into the million-dollar club, the popular coastal suburb of North Coogee has fallen sharply. Credit: Ray White Dalkieth/Domain

Located a few kilometres south of Fremantle, the beachside suburb of North Coogee had the second-sharpest decline.

The suburb has dropped off the list of Perth’s million-dollar suburbs after its median house price collapsed by 19.2 per cent, or $211,000, to $889,000. But its fall was off the back of a spectacular 52 per cent jump in house prices the previous year.

It was followed by Subiaco where the median dropped 16.9 per cent, or $218,000, to $1.07 million, then West Leederville (-12.9 per cent) and Woodlands (-12.4 per cent), where values fell about $128,000 and $155,000 respectively.

Maylands and Ardross recorded a decline of around 6 per cent, dropping to $510,000 and $1 million respectively, while Attadale recorded a similar fall which saw its median house price fall by $75,000 to hit a new median of $1.22 million.

Across the city, the median house price soared again to a record of $742,390, the steepest quarterly increase in three years.

Strategic Property Group managing director host Trent Fleskens said the fall in value in some suburbs demonstrated the Perth property market wasn’t homogenous.

“Whilst the median house value moved more than 12 per cent last year, there will always be a handful of suburbs that don’t grow in value,” he said.

“The main correlation between these suburbs is their price point.

“Many of these suburbs are in aspirational price points where they are reaching a price that most people in the area are now struggling to afford with the rapid rise in interest rates.

“They are also suburbs that have generally seen some of the strongest growth in the state over the past five years and are seeing a bit of a correction from the mayhem in COVID.”

However, Fleskens said the suburbs were all strong performers over the long term and would be in demand for years to come due to their fantastic amenity.

Other suburbs to record a fall in median house prices includes Burswood (down 6.3 per cent to $740,000), Joondalup (down 3.9 per cent to $490,000), Mt Hawthorn (down 2.2 per cent to $1.125 million) and Nedlands (down 2.2 per cent to $1.88 million).

Domain chief of research and economics Dr Nicola Powell said the upper end of the market typically led price growth.

“I think the fact that we’ve got these mid price point suburbs sought after by families dropping in value suggests they are losing steam and obviously past their peak,” she said.

“Prices can only go so far with high cost of living pressures and high interest rates which has an impact on borrowing capacity.”

Ray White Dalkeith Claremont sales executive Laura Johns said Nedlands was becoming more affordable due to rezoning, subdivision and new developments.

“Nedlands now offers houses on smaller blocks which helps buyers get into the suburb,” she said.

“Subiaco is also back, with the recent completion of One Subiaco and the burst of new retail stores and restaurants.”

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