Smart investors should target Perth's coastal suburbs

The latest REIWA figures for the September 2015 quarter reveal that the Perth property market is still undergoing a market correction, with the median house price falling by 5.9 per cent over the past year to $522,133.

This correction in property values is expected to result in greater activity by investors over the coming year as they understand that Perth house prices will rebound once confidence is restored to the market.

In particular, Perth coastal suburbs that have a median house price below $500,000 should experience increased sales activity as a result of renewed interest from investors.

There are a number of mid-priced coastal suburbs that offer excellent value for money, and these include Yanchep ($435,000) to the north and Rockingham ($465,000) to the south.

Both of these suburbs are primed for future capital growth due to their coastal location and the surging population in these areas, which will eventually put a premium on coastal homes.

For example, Rockingham will benefit from the huge number of new homes being built in Baldivis in a similar way coastal suburbs in the north of Perth like Hillarys benefited from the new estates that were constructed east of Wanneroo Road over the past 30 years.

Once coastal land becomes scarcer, land prices in these areas tend to rise above the market average as it occurred in Hillarys, and will soon occur in areas like Rockingham and Yanchep.

Property buyers should consider the following tips if they are considering buying a Perth coastal property over the coming months: