Australia’s Hidden Property Gem and the Ongoing Rental Market Challenges

In the ever-evolving landscape of Australia’s property market, Churchlands, a suburb of Perth, Western Australia, has emerged as the country’s top-performing suburb in terms of property price growth, overshadowing the more traditionally sought-after areas such as Noosa, Byron Bay, and Sydney’s eastern suburbs. According to Maria Gil’s report, new data from Domain highlights a staggering 49.8% increase in Churchlands’ house prices, with a median price reaching $1.535 million. This remarkable growth is attributed to the suburb’s appeal to young professionals and families, its proximity to Perth’s CBD and local beaches, and the high quality of local schools and amenities.

Tina Mincher of Ray White Cottesloe Mosman Park describes Churchlands as a “hidden gem,” offering viable options for younger people struggling with the rental market. Scott Fletcher of Acton Belle Property Mt Lawley echoes this sentiment, pointing out the suburb’s convenient location and the ripple effect from nearby premium suburbs as key factors in its price growth. “It’s just prime real estate there,” Fletcher states, underscoring the suburb’s diverse offerings and its appeal to a wide range of buyers.

On the rental front, Daniel Butkovich’s analysis reveals a contrasting scenario, with some Australian suburbs facing extreme rental shortages, making it incredibly challenging for tenants to find homes. The suburb of Dee Why in Sydney’s northern beaches, for instance, has a vacancy rate of just 0.32%, significantly lower than the national average. This tightness in the rental market has led to increased competition among tenants and rising rental prices, further exacerbating the rental crisis.

PropTrack’s senior economist, Eleanor Creagh, points out that the pandemic has significantly tightened rental market conditions in inner-city suburbs, with the surge in net migration and student arrivals adding to the pressure. However, some respite is seen in regional areas and the fringes of capitals where vacancies are higher, suggesting a slight easing of conditions for renters in those areas.

Despite the challenges in the rental market, there are signs of rebalancing, with increased investor enquiries and a rise in household sizes. However, as Creagh notes, conditions remain tough for renters, particularly in popular coastal and inner-city suburbs.

The contrasting dynamics of Australia’s property and rental markets highlight the complex interplay between location, supply and demand, and economic factors. Churchlands’ rise as a top-performing suburb underscores the shifting preferences and opportunities within the property market, while the ongoing rental challenges reflect the broader issues facing tenants nationwide.

References:

Maria Gil’s article on the performance of property prices in Churchlands, Perth.

Daniel Butkovich’s analysis of the rental market challenges in popular Australian suburbs.