Most undervalued suburbs in Perth for first home buyers
Key takeaways:
- Perth’s housing market entered 2026 with significant momentum, with the median house price officially surpassing $1 million for the first time in January, though well-located unit markets still offer accessible entry points for first-home buyers.
- Suburbs like Beckenham, Nollamara, and Cloverdale are identified as undervalued gems where median prices sit below neighbouring areas despite strong transport links, low vacancy rates, and significant recent infrastructure development.
- To navigate this fast-moving market, buyers are encouraged to secure finance pre-approval early and leverage government incentives like the $10,000 First Home Owner Grant and the 5% Deposit Scheme to avoid lenders mortgage insurance.
Perth’s property market is competitive, but that doesn’t mean first home buyers are out of options. With some suburbs still offering better value than their location and lifestyle suggest, there are opportunities to get started without over-stretching their budgets.
These ‘undervalued’ pockets can give first home buyers the chance to get a foothold in the market without stretching their budget too far.
What makes a suburb ‘undervalued’?
A suburb can be considered undervalued when its property prices are lower than what you’d expect compared with nearby areas or the quality of its amenities. Signs to look for include:
- Prices sitting below neighbouring suburbs with similar lifestyle appeal
- Strong transport links or new infrastructure projects in progress
- Upcoming retail, hospitality or community developments
- Low vacancy rates and solid rental yields, indicating healthy demand
- Recent growth that still leaves room for further gains
In Perth right now, unit markets in well-located suburbs are attracting more first home buyers, with values still well below house prices even after double-digit growth in the past year. In fact, it is the most affordable capital city in Australia when it comes to home ownership, especially for units, with 82.9% of suburbs offering cheaper mortgage repayments than rents.
In addition, unit price growth outperformed houses in FY24-25, according to the Real Estate Institute of Western Australia.
Top 5 most undervalued suburbs in Perth for first home buyers
Use this short list of Perth first home buyer suburbs as a starting point:
Beckenham
About 13km south-east of the CBD, Beckenham offers train services on the Armadale line, easy access to Roe Highway and the retail hub of Westfield Carousel. The suburb has a mix of post-war and more modern homes on generous blocks, with parks, schools and community facilities nearby.
Beckenham’s combination of connectivity, green space and relative affordability compared to neighbouring suburbs makes it a strong contender for first home buyers who want convenience without paying inner-city premiums.
Median property prices
- Houses: $736,816
- Units: $498,760
5-year price growth (to July 2025):
- Houses: 99.84%
- Units: 98.19%
Data source: Cotality
Cloverdale
Cloverdale is situated in the inner-east Belmont area, just minutes from the Perth CBD, Perth Airport and the Swan River foreshore. It is home to Belmont Forum shopping centre, sporting facilities and several schools.
While house prices have climbed sharply, the unit market still offers an accessible entry point, supported by low vacancy rates and strong rental yields. First home buyers benefit from the mix of urban convenience, transport links and proximity to both city and nature.
Median property prices
- Houses: $794,741
- Units: $565,754
5-year price growth (to July 2025):
- Houses: 109.36%
- Units: 101.36%
Data source: Cotality
Nollamara
In Perth’s northern corridor, Nollamara sits just 10km from the CBD and has regular bus services to nearby train stations. The suburb has multiple shopping strips, primary schools, and extensive parks, including the popular Des Penman Reserve.
Demand from both owner-occupiers and investors has been consistent, and while values have grown strongly, they remain competitive compared to neighbouring suburbs like Yokine and Dianella. For first home buyers, Nollamara offers a balance of affordability, established amenities and growth potential.
Median property prices
- Houses: $687,176
- Units: $659,648
5-year price growth (to July 2025):
- Houses: 96.61%
- Units: 112.44%
Data source: Cotality
Maylands
Positioned on a Swan River peninsula just 4km north-east of the CBD, Maylands combines a village-like café and arts scene with direct train access to the city. It also offers riverside walkways, golf courses and easy access to major roads.
Units are in demand thanks to their relative affordability compared to houses in the same area, giving buyers a chance to live in one of Perth’s most vibrant inner suburbs while staying within budget.
Median property prices
- Houses: $988,550
- Units: $511,514
5-year price growth (to July 2025):
- Houses: 57.15%
- Units: 83.69%
Data source: Cotality
Swan View
Swan View is located on the eastern fringe of Perth at the base of the Darling Scarp, and offers a more relaxed lifestyle with easy access to John Forrest National Park’s walking trails and picnic areas. The suburb has local shopping, schools and sports facilities, and is a short drive to Midland’s major retail and transport hub.
It has posted some of the city’s strongest long-term growth rates while still offering lower entry prices than many other lifestyle-focused suburbs, making it appealing for budget-conscious buyers seeking both space and potential capital gains.
Median property prices
- Houses: $665,306
- Units: $400,301
5-year price growth (to July 2025):
- Houses: 110.54%
- Units: 117.34%
Data source: Cotality
First home buyer tips in Perth
Make the most of government incentives
If you’re buying or building a brand-new property, check your eligibility for the First Home Owner Grant (WA). The $10,000 grant can go a long way towards covering some of your upfront costs, and can be combined with other assistance, such as the First Home Guarantee, which allows you to buy with as little as a 5% deposit without paying lender’s mortgage insurance. Understanding these options before you start searching can help you focus on properties you can realistically afford.
Secure your finance early
Pre-approval isn’t just a box to tick, and in Perth’s fast-moving housing market, it can make the difference between securing your dream home and missing out. Having pre-approval in place means you can make an offer as soon as you find the right property, giving sellers confidence that your financing is already in motion. It also clarifies your borrowing limit, so you don’t waste time on properties outside your budget.
Look beyond the headline price
A cheaper property isn’t necessarily a better buy if it’s in an area with limited infrastructure or low demand. Before committing, research local amenities such as schools, public transport, shopping and medical facilities.
Check council websites and state government planning portals for upcoming projects that could improve the area’s liveability or boost property values over time. Reviewing rental vacancy rates can also provide clues about demand; low vacancies often signal a strong local market that’s attractive to both homeowners and investors.
Inspect at different times
If possible, visit the suburb at different times of day and week. This gives you a sense of traffic flow, noise levels and how busy local facilities get – factors that might not be obvious at a single Saturday inspection.
Balance emotion with strategy
It’s natural to fall for a home, but a first purchase should also set you up for the future. Prioritise properties with features and locations that will appeal to a wide pool of buyers when it comes time to sell, not just those that suit your current needs.
Ultimately, success in this market comes down to preparation; follow a detailed 7-step checklist for buying a house to ensure you cover every phase from finance to settlement.
People also ask
What are the best suburbs to invest in Perth?
Locations with strong infrastructure, low vacancy rates and room for price growth often make the best investments. Well-connected middle-ring areas and unit-heavy pockets that often appear in ‘affordable suburbs in Perth’ searches are currently attracting attention.
Where is the cheapest place to live in WA?
Regional WA offers lower prices than Perth. Within the city, however, suburbs like Gosnells and Maddington remain among the most affordable.
What is the future of the Perth housing market?
Growth has slowed from the highs of recent years, but demand remains strong. Recent Perth property market forecast commentary points to steady conditions with ongoing interest in unit-friendly locations.
How do I choose a suburb in Perth?
Start by matching your budget to suburbs with good amenities, low vacancies and growth potential. Visit the area, talk to locals and get advice from a broker.
Expert advice: how a mortgage broker can help
A mortgage broker like Loan Market Bal & Associates can help you work out your borrowing power, compare lenders and find loan options that fit your goals. They can also guide you through the pre-approval process, giving you a competitive edge in a fast-moving market.
Key takeaways
Buying in Perth doesn’t have to mean overextending your budget. By targeting some of the most undervalued suburbs in Perth with strong fundamentals, first home buyers can secure a property with both lifestyle appeal and growth potential. With the right research and expert support, your first home could also be a smart investment. If you're a first home buyer in WA, you should also see if you're eligible for the First Home Owner Grant.
Ready to find your slice of the Perth property market? The first step is to know your borrowing power. Get in touch with a local Loan Market Bal & Associates broker today to get pre-approved and start your property ownership journey on the right foot.