Seasoned property investors regard the current times as the “worst cycle ever seen” in Perth but many of them still believe that there are ways to take advantage of the markets, especially as they go on recovery mode this year.
A recent survey conducted by the National Australia Bank confirmed that the Perth real estate market has now bottomed, which means that investors could save around $80,000 for each property purchase, according to ACTON’s CEO Travis Coleman. Prime suburbs close to the city, the river, or the ocean offer great value, and these “rock-bottom prices” are only expected to last for a while as property markets enter “recovery mode”.
Travis said: “Historically, prime coastal, river, and near-city suburbs record the highest level of capital growth over the long-term due to [the] strong focus on lifestyle in the Perth property market.”
Now would be the perfect time for property investors to upgrade to prime suburbs, while properties are still affordable. These real estate assets are expected to achieve strong capital growth when the Perth property market completely recuperates.
The forthcoming upswing in the Perth property market paves the way for the coastal property offering prices for as low as $350,000.
“People [on] the east coast of Australia would be amazed that in a major capital city of Australia such as Perth, you can still buy established coastal homes for under $350,000,” according to Travis.
Mandurah properties, for example, has a median price of $300,000, while Hillman has $303,5000, and has $347,500. These “Cinderella” coastal suburbs, which are often overlooked even if they are situated in well-established areas, are among those which holds a great potential for strong capital growth as the markets recover.
The real estate CEO said: “These Cinderella coastal suburbs have been generally overlooked [even] though they are ... located on substantial lot sizes that were developed more than three decades ago.”
“As a result of this underlying land value, many of these homes in coastal Cinderella suburbs can be purchased at land value, meaning that astute property buyers are purchasing the house itself for nearly free.
“The next financial year is shaping up to be a much more positive year for the Perth property market,” he added.
Travis said: “The property market is all about timing, and astute property buyers should now be targeting these Cinderella coastal suburbs while house prices in these areas are still at rock bottom."
“When the recovering in the Perth property market begins, it will soon become very difficult to buy an established coastal property in Perth for under $400,000,” he added.
Other Perth suburbs poised for rebound this year are: