The month in review: Perth
By Herron Todd White
The prestige residential market in Perth experienced a resurgence in activity toward the latter half of 2013 and in 2014 after enduring a period of market correction post the Global Financial Crisis. Prior to the middle of 2013, market activity had been subdued with vendors adjusting prices downward to meet the market and buyers bargain hunting.
Peppermint Grove is the most prestigious suburb in the Perth metropolitan area. It is an affluent suburb with a mixture of residential development ranging from heritage listed original single residential dwellings on large lots to more modern substantial single residential multi-level homes of the highest quality. The suburb shares a boundary with the Swan River to the east, Claremont to the north, Cottesloe at Stirling Highway to the west and Mosman Park to the south. The attraction of Peppermint Grove lies in its proximity to a number of private schools and yacht clubs as well as its proximity to the Perth CBD. The suburb is home to 833 residences and many of Perth’s elite from the medical, legal, property and resources sectors.
Properties within the Peppermint Grove locality are very well regarded in the market place and substantial estates are generally tightly held with few transactions. A lot of the activity occurs off-market with residents seeking to avoid publicity.
As with other Perth prestige suburbs such as Cottesloe, Swanbourne, Applecross and Mosman Park, Peppermint Grove underwent a market correction after the Global Financial Crisis of 2007 and 2008. The area experienced an oversupply of luxury residential properties as owner occupiers looked to exit the market and free up capital to deal with the financial crisis. This over supply resulted in a correction in values within the locality. The market has begun a recovery, the short term effect of which is a strong increase of 9.8% in the median house price in the year 31 December 2013 to 31 December 2014 when 27 properties were transacted in the locality.
Currently there are 27 houses officially advertised for sale within Peppermint Grove (www.realestate. com.au), and of these it appears that one is currently in transaction. There was a healthy increase in market activity within the locality during the second half of 2013 and into 2014. This is reflected in the bounce in the median house price and the substantial short term increase in value.
There have been 23 settled sales in Peppermint Grove since the beginning of 2014 for values over $3 million. According to realestate.com.au, there are currently three properties on the market in the locality with asking prices greater than $4 million.
We have discussed the Peppermint Grove market conditions with agents actively selling in the locality. They report reasonable interest for properties in the $1.5 million to $5 million price range with transactions ranging across vacant land, older original character dwellings requiring substantial renovations to more modern dwellings on subdivided sites. The market becomes more limited over $5 million. Over the six months to April 2015, there have been ten recorded settlements in Peppermint Grove with the highest recorded settlement during this period being for 12 The Esplanade, Peppermint Grove for $6,550,000 in November 2014.
There have been no recorded sales in Peppermint Grove for the past 18 months above the $10 million dollar mark.
The last recorded sale above $10 million was in November 2013 for 36 The Esplanade, Peppermint Grove at $13 million. It comprises a substantial 4-bedroom, 3-bathroom triple storey classic style limestone and slate tiled executive residence with 4-car garage, tennis court and pool set on a 1,759 square metre lot with direct Swan River frontage with extensive views available to the east.
Despite the above signs, real estate agents remain reasonably optimistic about the prestige market in Peppermint Grove for the remainder of 2015.