Western Australia's property market is booming, and some suburbs are making homeowners rich. Sellers in specific areas are walking away with eye-watering profits, echoing trends seen across Australia’s biggest cities.
Record Profits for Long-Term Homeowners
Across Australia, the property market has been kind to those who held onto their homes for years. Data shows that almost all house sales nationally made a profit in the last financial year. For WA, where the population is growing fast, this trend is particularly strong.
Almost every homeowner who sold their house recently did so at a gain. That’s because many bought before the recent price surges, especially before 2020 when the market really took off. Domain’s latest Profit and Loss Report shows sellers are cashing in, with some suburbs seeing median profits top $1 million.
In Sydney, for instance, Davidson on the Northern Beaches led the pack with a median profit of $1.3 million. Melbourne’s Middle Park and Brisbane’s Pullenvale also saw sellers pocketing more than $1.2 million. While WA suburbs didn’t top the national list, similar pockets of big returns are emerging, especially in fast-growing areas around Perth’s northern corridor.
WA’s Population Boom Fuelling Demand
Western Australia’s population growth is outstripping the rest of the country, putting extra pressure on housing demand. The City of Wanneroo, for example, will probably nearly double its population by 2036.
Alkimos is seeing price growth, thanks to new developments and infrastructure projects drawing in buyers.
The influx of residents in these areas is creating a hot market for sellers. Homes bought years ago are now worth much more, thanks in part to the limited supply and rising demand. Costco is coming to Alkimos in 2027, adding to the area's appeal. That development alone will probably generate hundreds of local jobs and boost the suburb’s profile, making it even more appealing for buyers and investors.
Why Homeowners Are Holding On Longer
One reason for the strong profits is that sellers are holding onto their homes longer. Short-term sales have dropped sharply, partly because selling costs have climbed. Stamp duty, legal fees, and moving expenses add up, especially in pricier markets. So many homeowners prefer to wait and maximise their gains.
Also, recent buyers have been less likely to list their homes soon after purchase, dampening churn in the market. People seem to be treating property as a long-term investment rather than a quick flip, which means profits keep building up over time.
In WA, where population growth and infrastructure projects fuel optimism, this trend looks set to continue. Suburbs that once flew under the radar are now hotspots for sellers making tidy profits, especially those who bought before the recent price hikes.
Looking Ahead: What It Means for Buyers and Sellers
Prospective buyers in WA should expect prices to stay high in sought-after suburbs. Sellers are benefiting from strong market conditions, but that also means competition among buyers will stay fierce. The presence of major retailers like Costco in growing suburbs adds another layer of convenience and value, pushing prices higher.
On the flip side, homeowners sitting on properties in these areas could be sitting on a goldmine. Holding for the long haul seems to be paying off, with profits reaching seven figures in some cases. That said, selling costs remain a factor, and those considering jumping into the market should weigh those carefully.
As WA’s population keeps growing, the housing market will likely stay lively. Suburbs that combine new infrastructure, retail developments, and solid community growth will continue to be where sellers make the biggest bucks.
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WA's property profit surge is following the national trend, where owning a home long-term leads to significant financial gain. With population growth and new developments driving demand, home sellers in certain WA suburbs could be the next to join the million-dollar profit club.
This article was created with AI assistance.
