The suburbs which are most likely to experience a bump in values soon have been revealed by a market expert.
RE/MAX WA managing director Geoff Baldwin has urged investors to stop following the leader and buying in suburbs which have already appreciated in value. Instead, he said they should look to neighbouring suburbs which are yet to experience the bounce in prices.
“Investors and home buyers should be looking at similar nearby suburbs to optimise their opportunities for capital growth and profits,” he said.
“There can be a big future in poor neighbours.”
Mr Baldwin shared some examples of high-performing Perth suburbs – based on annual price growth – with poor neighbours that are set to increase with a market bounce.
“Kallaroo is up by 12 per cent over the past 12 months, but both similar neighbours Hillarys and Mullaloo are set to bounce back, having shown recent negative growth.
“South Fremantle is up by 13 per cent, while North Fremantle is down 24 per cent, which spells opportunity.
“Churchlands is up 6 per cent during the same period [and] Wembley is down 10 per cent.”
Inner south-eastern Perth suburb Lathlain was given a mention, experiencing 15 per cent growth, while neighbouring suburb Carlisle was down for the period.
Victoria Park was the final suburb noted for experiencing growth, while close neighbours Kensington and East Victoria Park were down.
“When the market rebounds, there is every chance these suburbs will increase in value much more than those that have already run their race,” Mr Baldwin said.
“There are at least a dozen more examples that can be found with a little research.”