A joint study by Aussie Home Loans and CoreLogic recently revealed four South West suburbs were listed in the top 100 suburbs nationally for value growth in the past 25 years.
The 25 years of housing trends report ranked Leschenault second nationally following extraordinary growth in its median house price from $36,000 to $527,500 over the last 25 years.
Glen Iris, Gelorup and Usher also made the top 25 nationally.
The South West suburbs have performed well above the national average, which has seen prices rise 412 per cent since 1993 from $111,500 to the current level of $571,400 - at the annual rate of 6.8 per cent over the last 25 years.
Aussie Home Loans chief executive officer James Symond said it was not a big surprise that the South West suburbs had done so well.
“The South West of Western Australia rates highly in the national median price gains as it is an attractive area for those seeking a regional lifestyle, whether they be young families or older Australians,” he said.
“There are a wide range of exciting amenities in the area for everyone to enjoy, ranging from excellent surf beaches to the best wineries in the world.
“I expect houses to continue their strong growth in value over the next 25 years.
“This report’s a timely reminder that residential property in WA has been a strong performer over the long term.
“With average mortgage rates currently close to their record low levels of the 1960s, loan serviceability levels have actually improved in recent years.”
Mr Symond said the report also showed first home buyers were more active in WA than any other state at 24.9 per cent, which is well above the national average of 17.4 per cent.
“Despite this, housing affordability remains a concern, with the percentage of annual household income in Perth required to service a loan – at an 80 per cent loan to value ratio – rising from 22.5 per cent to 31.2 per cent over the last 17 years,” he added.
