Mandurah is the suburb ticking all the boxes for investors

Given Australians’ longstanding love affair with seaside living and their increasing desire for affordable abodes, Mandurah presents itself as the ultimate destination for investors seeking the perfect blend.

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When Australians think of “going away” for the summer holidays, the first thing that usually comes to mind is to have beach sand between their toes.

This obsession, however, may be the result of the lay of the “sand” in the Land Down Under.

With approximately 85 per cent of the country’s population living within an hour’s drive of one of the 11,000-plus beaches, Australians are seen to be naturally inclined to embrace the coastal lifestyle and dive headfirst into beach culture.

But over the pandemic, coastal regions were transformed from being mere getaway locations to coveted dream destinations for permanent residence seekers as the sea and tree change reached fever-pitch heights among Australians.

“The global pandemic created one of the greatest lifestyle shifts Australians have experienced. It emphasised the importance of the home and its surrounding community, as well as the ability to work, live and play within a short distance of where we reside,” Dr Nicola Powell, Domain chief of research and economics, stated.

Domain’s analysis of keyword searches in 2022 showed that lifestyle additions and location were high on wish lists, such as “pool”, “waterfront”, “beach”, and “view”.

This “regional renaissance” saw lifestyle destinations — particularly coastal locations — surge in migration.

Regional Australia Institute (RAI)’s Regional Movers Index for the fourth quarter of 2022 showed that Queensland’s Gold Coast and Sunshine Coast were the most popular destinations by numbers.

Notably, the increased demand from sea changers also caused prices in the areas to surge from March 2020 to their peak in May last year — with the average price of houses in both regions jumping by an enormous 52 per cent.

But the interesting trend is not strictly seen just during the pandemic. Over the last 10 years, prices in some coastal hotspots have more than doubled (even tripled), sending median prices comfortably over the $2 million mark in some areas.

While the news is good for investors who bought in early into these locations, the rising cost of living, combined with a higher cost of borrowing, means it is now more difficult for buyers to live out their sea-change dreams.

But not all hope is lost for investors looking for a coastal location that still has a low entry point.

The seaside suburb of Mandurah, located within the larger city of Mandurah, was recently identified as a top contender among numerous other suburbs in Western Australia, securing a coveted spot in the Smart Property Investment Fast 50 ranking for the upcoming year.

Drawing insights from a 14-strong investment expert panel and recent housing performance collected from open-source data, the Fast 50 report offers an unparalleled glimpse into Australian suburbs poised for future growth, providing valuable insights into their housing performance.

Located along the state’s coastline, Mandurah boasts a vibrant lifestyle, stunning beaches, and a bustling dining and entertainment scene.

Hailed as the Little Venice of Western Australia, the area’s waterways and canals make for a popular retreat from nearby central business districts and make for a number of interesting housing options for short- and long-term living, ranging from breathtaking beachside properties through to units and single-storey accommodation.

The suburb boasts a number of amenities conducive to permanent or holiday living, including medical facilities, boat ramps, a large shopping centre, plenty of resorts and hotels, a popular museum and a country club, which make even the most permanent residents feel as though they’re on vacation.

But liveability isn’t Mandurah’s only drawcard. With a median price of only $430,000, the suburb presents an attractive investment opportunity with a high potential for growth.

Mandurah has shown consistent growth in the property market, with a median quarterly growth rate of 3.6 per cent and an average annual growth rate of 1.60 per cent. Over the past 12 months, the suburb has experienced a remarkable growth rate of 10.80 per cent.

If you’re aspiring to be the landlord of a holiday stay while also having a place on the beach to relax on, Mandurah is the place where you can hit two birds with one stone.

With a gross rental yield of 5.90 per cent and a median rent of $485, the rental market in the suburb presents a favourable environment for property investors.

To find out which other regions made the Smart Property Investment Fast 2024 report, click here.

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