Mind the (price) gap: Where Perth home buyers can save by moving one train stop

Perth home buyers can make savings of up to six figures in their property search just by taking a slightly longer commute.

Travelling one or two stops further on the train line can cut the cost of a typical property as much as half in parts of the city, REIWA data shows.

The analysis comes as rising property prices, reduced borrowing power and a drop in the number of homes for sale force buyers to broaden their property search.

Among the biggest gap in prices is along the Midland line, where riding one extra stop between Mount Lawley and Maylands reduces the median house price from $1.2 million to $693,000.

A similar saving of 42 per cent can be made if buyers travel one additional station from Leederville to Glendalough, where the average property price tumbles from $1.1 million to $635,000.

Recent sales in the suburbs show a three-bedroom house on Forrest Street in Mount Lawley sold for $1.19 million, while a three-bedroom house on Marlborough Street in Maylands sold for nearly half that price at $700,000.

Abel Property sales consultant Ryan Abel said the bigger blocks and proximity to the city attracted a higher price for properties in Leederville.

“Glendalough has a lot of apartments or smaller, older houses whereas Leederville encompasses houses and townhouses that are a newer build or far more modern,” he said.

He said the neighbouring train station suburbs of Subiaco [$1.55m] and Daglish [$1.35m], however, had fewer differences.

“You almost can’t tell where one starts and one ends, but you can tell if you look at the prices,” he said.

“The significant price difference is partly due to the amenities in Subiaco – the restaurants, the nightlife, the shopping – but also partly due to the lack of awareness of Daglish as a suburb.

“The same thing applies between Leederville and Glendalough, the higher priced suburbs have a social appeal and a reason to visit.”

But it’s not just affluent inner-city suburbs where prices change drastically. Further along the Mandurah line, buyers can save almost $300,000 on the typical house price, by travelling one stop past Murdoch ($940,000) to Cockburn ($653,000).

Carlin Team owner Tom Carlin said a lot of buyers initially looking in the Murdoch and Bibra Lake area were choosing to head further south to Success and surrounding areas.

“The one key buyer we’re seeing is investors that are looking at the fact that anywhere in the corridor of Murdoch, Leeming and Bullcreek is just so high in value, whereas you get down to the Cockburn houses and not only are they a lot cheaper, but rents are skyrocketing,” he said.

“Buyers are being forced into a supply and demand issue. We sold a three-bedroom home in Hammond Park recently that had 18 offers and sold for $70,000 over what we thought it would.”

Buyers agent Cate Bakos said a proximity to train stations was also a priority for home buyers and investors, but warned house hunters against getting too close.

“It’s not a deal-breaker, but if it’s close to a rail line it is valuable to buyers,” Bakos said.

“It’s got to be close enough, but not too close. Within 400 metres is great but within 50 metres is terrible.

“If you’re on a stretch of the line with a train sounding the horn as it goes past, you don’t want that to be your wake-up call.”

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