Is this Perth's new Peppermint Grove?
Lisa Calautti, Property Journalist
First published 28 March 2024, 10:56 AM
Cottesloe is fast becoming home to some of Perth’s hottest property, with house price growth in the beachside suburb eclipsing that of its affluent neighbours.
House prices in Cottesloe have reached that of Peppermint Grove. Picture: Getty
PropTrack data shows median house prices in Cottesloe have grown 6.3% in the past 12 months to $3.4 million, now sitting on par with Peppermint Grove, where house prices have recorded a steep 22.4% decline over the year.
While it's always commanded a premium price tag, PropTrack economist Anne Flaherty said growth in Cottesloe was now exceeding its affluent riverside neighbours of Peppermint Grove and Dalkeith.
“It’s completely not surprising that Cottesloe is one of the most expensive suburbs in Perth," Ms Flaherty said.
"Not only does it have a beautiful beach but it’s also close to the Perth CBD and it’s got excellent connectivity, whether you are going to the northern suburbs or the southern suburbs, it’s very easy to get around."
Sprawling mansions line Perth's Swan River from Mosman Park to Dalkeith. Picture: realestate.com.au
Property valuer and analyst Gavin Hegney told realestate.com.au Cottesloe was the 'flavour of the moment', with people moving out of areas like Dalkeith, Peppermint Grove and Mosman Park to Cottesloe for the beach lifestyle.
“This is not first time we've seen it happen and it’s not the last time it’s happened,” he said.
“The top end has been led by the Cottesloe market, which was the epicentre of the boom and that showed up significant price growth first.
“Interestingly, though, it's moved at such a rate relative to some of the other luxury suburbs, that for instance, it’s now left Peppermint Grove cheaper and arguably has better value for money than the Cottesloe market.”
Candie Italiano from Ray White Dalkeith Claremont said many buyers were favouring Cottesloe over its western suburbs counterparts.
“I feel like it's people's destination to upgrade, to downsize, upsize, move across,” she said.
“People want the lifestyle that Cottesloe has to offer, you know, walking everywhere, people are connected as opposed to being behind big fences with no real community, that sort of thing.”
Perth buyers are favouring Cottesloe over other affluent suburbs due to its vibrant lifestyle offering. Picture: Getty
A Cottesloe resident herself, Ms Italiano said Cottesloe’s popularity began to rise just before the pandemic.
“People were like, ‘We want that lifestyle,’ and you know, people might have visions of what Cottesloe might look like and it's just not that at all.
“It’s very chilled and relaxed and friendly and it’s where people like to be.”
Australia's hottest capital city
As well as having Australia's top performing capital city, with Perth dwelling prices up 16.32% over the year to February, Ms Flaherty said WA has experienced the strongest population growth in the country, increasing 3.1% during the 2023 financial year which was above the rate of growth in any other state.
“Property prices are at peak levels and compared to March 2020, prices in Perth are up 53%,” she said.
Wide, tree lined streets lead to Cottesloe's famous coastline. Picture: realestate.com.au
Mr Hegney said while Perth comprises about 10% of Australia's population it was home to three or four of the top 10 wealthiest people in the nation.
“So we have a disproportionate amount of top-end wealth in Perth relative to the size of our population housing market, relevant to the size of Australia,” he said.
“When you have a suburb like Cottesloe, whether it be an Andrew Forrest, or a Gina Rinehart or a Chris Ellison, or one of the main mining people wants to buy a property there, it can quickly translate into breakout prices.
“Cottesloe is very small market and relative to the size of the wealth in Perth, and super prime property in Cottesloe is very tightly held, and so you can get a breakout price that can move markets 10% to 25% in a space of two or three sales very quickly.”
According to PropTrack records, the most expensive home to have sold in Cottesloe was ‘Le Fanu’ at 2 Salvado Street, for $15,600,000.
Mining magnate Andrew 'Twiggy' Forrest snapped up La Fanu in 2022. Picture: realestate.com.au/sold
The landmark home set on a beachside 1492sqm block was originally built in 1893, with a staggering 36m of ocean frontage, and was snapped up by Andrew Forrest in August 2022.
The heritage-listed residence previously underwent an ambitious restoration project that literally saved it from demolition.
The dilapidated property was overrun by pests when WA mining magnate Steve Wyatt purchased it in 2009, before appointing luxury Perth builder, Zorzi Homes, to restore the property to its former glory.
Prime Cottesloe real estate up for grabs
Here are some of the best homes Cottesloe has to offer right now.
Art deco apartment block on one of Cottesloe's 'finest streets'
Set on what is described as one of the suburb’s best streets, this circa 1934 residence at 51 John Street, Cottesloe is split into three separate apartments on an 895sqm parcel of land.
Currently three separate apartments, 'St John's Court' has the potential to be converted into a sprawling family home. Picture: realestate.com.au
Located metres from Cottesloe beach, Art Deco features adorn all three apartments, with the entire second floor’s renovation designed to feel like a home.
The residence is being sold via an offers campaign ending April 17.
One minute to the beach
Literally moments from the sand, this family home of more than 20 years at 6 Sydney Street features four bedrooms, three bathrooms with a picture perfect blue and white facade with gabled arches with a Cape Cod design.
Elevated in one of Cottesloe's most iconic beachside locations, this converted weatherboard home has timeless Cape Cod appeal. Picture: realestate.com.au
Other highlights include an original limestone cabin which has been used as a yoga room.
It is accepting offers from $3,999,999 until March 26.
Calling all downsizers
With a price guide of ‘early $2 millions,’ this elevated three bedroom, two bathroom home at 1 Wentworth Street is part of a quiet cul-de-sac.
Ideal for a small family or those seeking to downsize in style without compromising space. Picture: realestate.com.au
It has a new pool, car access of a laneway, and is a short stroll from the beach or river.
Originally published at https://www.realestate.com.au/news/is-this-perths-new-peppermint-grove/
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