Bargain coastal suburbs

12 Apr 2017

ThinkstockPhotos-184740595-735x450-(2).jpgLooking to buy in the new year? There are bunch of prime coastal suburbs going for less than they were worth 10 years ago...

And it gets better… 

These highly competitively priced suburbs are likely to see strong capital growth once the Perth real estate market gains further, making them not just a great buy - but a secure investment as well.

Where?

This summer, property buyers should be focusing on coastal suburbs in Perth with a median house price below $500,000.
 
In the coastal strip of Perth, the median price of a home in Butler has fallen by 9.7% over the past decade to $410,700.  This represents a saving of around $45,000 in the purchase price of home in Butler compared to ten years ago.

In the southern coastal strip, the median price of a home in Secret Harbour has fallen by 14.3% over the past decade to $420,000 which represents a savings of $70,000 compared to buying in the same suburb back in 2007.

Other affordable Perth coastal suburbs where astute property buyers can purchase homes cheaper than a decade ago include:

Two Rocks (-20.3%),
Rockingham (-5.5%),
Shoalwater (-5.3%),
Port Kennedy (-5.1%)
Waikiki (-2.8%).

Trends:
The Perth property market moves in cycles and after 10 years of stagnant and falling property prices, there are now strong signs that the local market is now in a recovery mode.
Coastal property has traditionally outperformed the overall Perth property market because of the strong focus on lifestyle in Western Australia.

Buying Coastal 101:
Our CEO Peter Peard, give his top tips on buying a coastal property.
  1. Pick established coastal locations where there is strong population growth. For example, in the older parts of Rockingham such as Warnbro or Waikiki, you can still buy older homes on large 700sqm lots for under $400,000 just a few streets away from the beach. The huge population growth of more inland suburbs such as Baldivis will put an upward pressure on the land values of these older coastal suburbs moving forward.
  2. Check the how long it takes to walk to the beach from the lot you plan to buy as this can be a key selling point when you decide to sell.
  3. Compare the lot size you want to purchase with similar sized lots with the same distance to the beach in other estates to determine if you are getting value for money.
  4. If the estate is in an outer coastal area, check if there are plans for new roads or rail to the area. New transport infrastructure will improve travelling time and lead to an upward pressure on property values. For the example, that the new rail line to Yanchep will have a positive impact on property values of this northern suburbs coastal suburb.
  5. Check if you lot has the potential to offer ocean views through building a second story on the home as this will increase the overall resale value of the property.
  6. The specific location of a lot in new housing development is very important because blocks that are located on a quiet street or opposite a park or school will appreciate in value at a much greater rate. 
  7. The quality of the coastal estate is also important. Home buyers now want to live in estates which are planned to a very high quality with park lands, walkways and an impressive entrance. 
 

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