First homebuyers urged to focus on Cinderella suburbs like East Perth.
First homebuyers flooding the Perth real estate market as a result of the Federal Government’s new five per cent home deposit scheme have been urged to focus on properties in undervalued suburbs.
According to Limnios Property Group Licensee and Managing Director, James Limnios, first homebuyers should target affordable, well-located suburbs where there is a limited supply of homes.
“Unfortunately, many first homebuyers are focused on using the new deposit scheme to build or buy a new home in the outer suburbs while overlooking much better value-for-money properties in the inner Perth suburbs,” he said.
“For example, in inner-city suburbs like East Perth, the median home price has increased by just 32.8 per cent over the past five years, while the overall Perth market has seen a 69.17% growth rate.”
“First homebuyers should also consider that property prices in these inner Perth suburbs are now very competitive compared to the outer Perth suburbs such as Baldivis, where the median price of a home has exploded by 92% over the past five years.”
“The property market does not move in a uniform pricing manner, and that is why undervalued suburbs in Perth will undergo a major upward market correction because buyers will see them as fundamentally underpriced.”
Mr Limnios said the reality was consumers could now buy a near-new apartment in the inner city of Perth for not much more than what it cost brand new about a decade ago.
A recent example is 36/35 Wellington Street, East Perth – a low-level apartment development in the heart of the city, which sold in September for $510,000.
“Back in 2012, when it was built, this apartment sold for $460,000, meaning it has only increased in price by $50,000 over 13 years,” Mr Limnios said.
“Established apartments in the inner city are now starting to rebound in price due to a lack of new supply and major new infrastructure, such as the impending opening of the new ECU City campus in Northbridge.
“First homebuyers who purchase an older apartment, villa or townhouse in the inner city now could get into the property market without financially overexposing themselves and also achieve strong capital growth over the next few years.”
Mr Limnios said there were also opportunities for first homebuyers to buy new and off-the-plan homes in the inner city following the launch of the State Government’s Urban Connect Shared Equity scheme.
This new initiative will provide 1000 shared equity loans to Western Australians looking to buy apartments, townhouses, units or villas which are newly built, off-the-plan or under construction anywhere in metropolitan or regional WA.
“Through Urban Connect Shared Equity, property buyers can purchase a new apartment or townhouse worth up to $730,000 with the State Government taking an equity share of up to 35% or $250,000 in the property, and only a 2% deposit is required.” Mr Limnios said.
“The benefits of the scheme are that homebuyers pay less upfront costs on their deposit, no lender’s mortgage insurance and lower ongoing mortgage repayments on the property.
“A large number of developers in the inner city are now poised to undertake new housing developments in the inner-city area of Perth, and this scheme offers first homebuyers the chance to purchase an off-the-plan home before the inner-city market starts to really take off.
“Buying property is about location and timing.
“Now is a once-in-a-lifetime opportunity for first homebuyers to purchase a home in the inner city of Perth while the stars are still aligned in terms of affordability and undersupply in this prime property market.”
Article by James Limnios, Limnios Property Group Licensee and Managing Director
25 October 2025
