FIFTEEN of the top 20 highest growth suburbs in Perth during the past 12 months were located at least 15km from the Perth GPO, according to Cotality.

Cotality (CoreLogic’s new name) said the lower quartile of the housing market had led capital growth during the past year reflecting heightened demand for more affordable homes as buyers navigate continued serviceability constraints and stretched affordability metrics.

The City of Swan (seven suburbs in the top 20) and Shire of Mundaring (four suburbs) LGAs accounted for the biggest share of high-growth suburbs.

Cotality research director Tim Lawless said despite broad economic headwinds, strong capital growth had clustered in city outskirts where home values remained “just” within reach for many Australians.

“Households are making pragmatic decisions in response to tighter borrowing capacity and higher mortgage costs,’’ he said.

“That’s pushed demand towards the lower quartile of the market, and it’s across the outer suburbs that this value-driven demand is translating into the strongest growth.”

He said the trend was visible in every capital city.

Adelaide has seen dwelling values rise by 9.8 per cent during the past 12 months, with every suburb recording a rise but 16 of the top 20 suburbs for annual gains in value were located at least 20km from the Adelaide GPO, with the strongest conditions skewed towards the northern suburbs.

In Brisbane across the top 20 suburbs recording the highest annual gain in values, 17 were located at least 20km from the Brisbane GPO.

Melbourne followed a similar pattern, where despite broader market softness, 38 per cent of suburbs 20km or more from the CBD recorded growth.

In Sydney, all of the top twenty suburbs for annual growth were at least 20km from the CBD.

Mr Lawless said the latest data underscores a structural shift in buyer behaviour driven by the fact that the median income no longer buys the median home.

“In theory, a household on a median income, with a 20 per cent deposit, would need to dedicate just over half of their gross income to afford a median-priced home.

“In practice, that’s pushing buyers further out, where homes remain comparatively affordable.

“The result is that we’re seeing outer suburban markets do much of the heavy lifting in terms of price growth.”

He said the geographic tilt towards the fringe had implications for infrastructure, transport and planning, as populations in those areas grow rapidly off the back of housing demand.