MANDURAH: ONGOING INVESTMENT APPEAL

18th May 2006

Property Wizards buyer's agent Trevor Dunkley has dubbed Mandurah as an ideal investment option, saying it boasts key growth factors that will see it continue to perform strongly in the year ahead.

Mr Dunkley said the median house price in the suburb of Mandurah was $263,000, representing growth of 18 per cent in the 12 months to March 2006.

"Mandurah itself is performing well, but the prime investment opportunities do not stop there - they also extend to the greater Mandurah area, including suburbs such as Silver Sands and Halls Head," he said.

"While some of the areas along Perth's northern coastal strip are already way out of the reach of the average investor, it is still possible to pick up affordable coastal and near-coastal properties in the southern strip around Mandurah."

Mr Dunkley said property prices were being driven upwards in large part due to the anticipation of the coming Perth to Mandurah rail line.

"When the line is complete, a trip from Mandurah to Perth will take just 48 minutes, meaning many people initially put off the area due to longer travel times to the city will now be lured down there," he said.

"Construction of the line has already driven prices higher, but there will likely be another surge once the line is finished and people can see the tangible benefits of the infrastructure, in the same way prices skyrocketed after the Sydney airport tunnel was built."

Mr Dunkley said the region was also benefiting from its transformation from a sleepy retirement cum weekend beach shack village to a booming centre boasting a $50 million marina and luxury waterfront developments.

"More and more wealthy retirees and baby boomers are being drawn to Mandurah and its surrounds due to the wonderful lifestyle benefits it offers such as boating, swimming and fishing, but the massive population growth tipped for the years ahead will mainly be driven by homebuyers seeking affordable properties," he said.

"Those families will be utilising the new railway line and forcing up the price of land even further."

He said plans to extend the Kwinana Freeway and to construct the Peel Deviation Road would also make the area more attractive as they would also slash travelling times between Mandurah and Perth.

Mr Dunkley said where investors could fall down was in knowing what type of property to look for in the area.

"Good sized blocks with older homes on them are the secret to superior investing in the Mandurah area," he said.

"Growth will be driven higher due to the value of the property being in the land rather than the house.
"As well, homes closer to the ocean will perform better than those further out, and blocks that are zoned for development will enjoy higher growth."