According to a real estate CEO, property buyers should be taking advantage of the upcoming upswing in the Perth property market during this new financial year, with coastal property offering prices under $350,000.
Travis Coleman, CEO of ACTON, says these “Cinderella” suburbs have the potential for strong capital growth.
“People in 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,” Mr Coleman said.
As an example, Mr Coleman suggested such Cinderella suburbs as Mandurah with a median house price of $300,000, Hillman with a median house price of $303,500, and Merriwa with a median house price of $347,500.
“These Cinderella coastal suburbs have been generally overlooked [even] though they are in well-established areas and located on substantial lot sizes that were developed more than three decades ago,” Mr Coleman said.
“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.”
Mr Coleman added that investors with properties in Sydney and Melbourne will be attracted to the state because the former two markets have peaked, and will be capitalising on Perth as it goes into a recovery mode.
“In addition, very competitive established house prices, combined with the recent reduction in the First Home Buyers Grant for new homes, will encourage more first home buyers to buy established,” he 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.”